LISBON, March 16 (Reuters) - The three bidders in the privatisation of Portugal's flag carrier TAP must submit plans to bolster its operations and routes in all Portuguese airports, not just its main
Portugal Demands TAP Buyers Expand Operations Across All National Airports
Privatisation Requirements and Strategic Implications for TAP
Overview of the Privatisation Process
LISBON, March 16 (Reuters) - The three bidders in the privatisation of Portugal's flag carrier TAP must submit plans to bolster its operations and routes in all Portuguese airports, not just its main Lisbon hub, Prime Minister Luis Montenegro said on Monday.
British Airways owner IAG, Air France-KLM and Germany's Lufthansa formally submitted expressions of interest to buy a 44.9% stake in TAP, and the Portuguese government invited them in early January to present non-binding offers.
TAP's Strategic Assets and Government Objectives
Key International Connections
TAP's most attractive assets are its connections to Brazil, Portuguese-speaking African countries and the United States from its Lisbon hub, which the government wants to keep and expand, while also boosting the airline's scale and competitiveness.
Expansion Beyond Lisbon
However, Montenegro said bidders must strengthen TAP's operations and routes not only at its Lisbon hub but also at Portugal's nine other airports, including Porto, Faro in the Algarve tourist region, and those in the Azores and Madeira archipelagos.
Government's Stance on Airport Utilisation
"We will demand that the full use of our airport capacity potential is guaranteed. There will be no privatisation if we don't guarantee this," Montenegro told reporters at an event at Porto airport.
Financial and Strategic Details of the Sale
Offer Requirements and Timeline
The non-binding offers, due by April 2, must include a price proposal for the TAP stake, along with an industrial and strategic plan for the airline. The privatisation is expected to be completed in the second half of 2026.
Valuation and Market Context
Bernstein analysts valued TAP's 44.9% stake at 700 million euros ($804.23 million) in November.
They said this represented a roughly 25%–30% premium over European peers, justified by TAP's strategic upside.
($1 = 0.8704 euros)
(Reporting by Sergio Goncalves; editing by Charlie Devereux and Keith Weir )
