The Portuguese government is reconsidering its privatization strategy for TAP Air Portugal It has said it wants to retain a 51pc stake in the airline in discussions with Air France-KLM, IAG, and Lufthansa.
Infrastructure Minister Miguel Pinto Luz stated that TAP’s privatization will not proceed “at any cost,” emphasizing the need to recover the government’s €3.2 billion investment while aiming for full privatization.
Concerns about undervalued bids have led the government to explore delaying the sale until 2026, hoping that the airline’s valuation will improve, with a report being prepared to assess the potential benefits of postponement.
TAP’s financial issues complicate the situation, highlighted by its significant debt and ongoing legal disputes, leading to uncertainty about whether the airline can achieve the desired financial outcomes through the privatization process.
