Montenegro says TAP privatisation will only advance if the buyer operates flights to all of Portugal’s airports

Portugal’s Prime Minister, Luís Montenegro, made clear this week that the part-privatisation of State airline TAP will not go ahead if the airline group that wins the bid fails to invest in all the country’s airports.

“There will be no privatization (of TAP) if we do not get a guarantee that our airports, including, naturally, Francisco Sá Carneiro airport (in Porto), will get the potential, in terms of the company’s activity, that they deserve and that are required in light of the country’s strategic interest”, stated Montenegro at a ceremony marking the 80th anniversary of Porto airport.

Montenegro added that the requirement and guarantee of use of all airport capacity is “a cornerstone” in the TAP privatization process.

“This was very clear from the beginning, it was very clear in our decision, it was very clear in the legal stipulations set out for this (sale) process”, he stressed.

The airline’s investment in the airports of Porto, Lisbon, Faro and autonomous regions is a requirement that the Portuguese State will not back down on”, insisted Luís Montenegro.

Non-binding proposals for the privatization of TAP must be submitted to Parpública (the State companies holding) by April 2 and must include a financial component, such as the price offered for shares and future appreciation mechanisms (‘earn outs’).

Interested parties will also have to present industrial and strategic plans, synergies and guarantees for preserving TAP’s status as an air operator in the European Union.

The specifications provide for the sale of up to 44.9% of TAP’s capital, with 5% reserved for workers, with any unsubscribed participation subject to the future buyer’s right of preference.

Source: Diário de Notícias; Credits: TAP