The parent company of Aer Lingus, International Consolidated Airlines Group (IAG), has publicly called for a defined route towards full ownership of TAP Air Portugal as part of the ongoing privatisation process for the Portuguese national carrier.
In statements made in late 2025 and reiterated in early 2026 discussions, IAG executives, including Chief Financial and Sustainability Officer Nicholas Cadbury, expressed concerns that acquiring only a minority stake—currently capped at 49.9pc under the government’s terms—would limit the group’s ability to implement necessary operational reforms and achieve meaningful improvements in profitability at TAP.
The Portuguese state, through holding company Parpública, relaunched the partial privatisation in mid-2025, aiming to sell up to 44.9pc to a strategic investor while reserving 5pc for employees and retaining majority control to address domestic political sensitivities. IAG, alongside rivals Lufthansa Group and Air France-KLM, submitted expressions of interest by the November 2025 deadline and was subsequently invited to advance to the non-binding offer stage. However, IAG has emphasised that without a clear mechanism—such as call options or phased acquisition rights—leading to majority or total control, the investment case becomes challenging, as minority influence may not suffice to drive the deep changes required to enhance TAP’s margins and competitiveness in transatlantic and African markets.
As of February 2026, the bidding process remains active, with concrete offers expected in the coming months following extensions to certain privatisation timelines granted by the European Union. No binding bids or final decisions have been announced, and the government continues to prioritise a structure that safeguards Portugal’s national interest while recovering elements of the billions in state aid provided during the pandemic. IAG’s position underscores the broader tension in European airline consolidation, where strategic buyers seek sufficient governance to justify substantial commitments amid regulatory and political constraints.
