Dublin, Jan. 14, 2025 (Lusa) - Joe Gill, director of GoodBody Capital Markets and an aviation expert, said on Tuesday that the IAG and Lufthansa groups are the most obvious candidates for the privatisation of TAP due to their history of buying small companies and their financial strength.
"I think the two most obvious large groups [in the privatisation of TAP] are IAG and the Lufthansa group, it would all come down to these two, they have a successful track record in buying small companies and they have financial strength, which I don't know if Air France-KLM has, [...] they have a large amount of debt," said Joe Gill, at a meeting with Portuguese journalists in Dublin, Ireland.
Joe Gill was IAG's advisor in the purchase of the Irish flag carrier, Aer Lingus, in 2015.
"If I were working with the Portuguese government, I would advise them to ensure that the buyer is financially sound," said the consultant, who also doesn't take kindly to the state maintaining a majority position in the airline. "They could interfere in decisions that aren't good for the airline," he said.
Joe Gill also advised against a structure with several shareholders and different agendas and said he would be surprised if non-European airlines were interested in buying TAP.
Portugal's minister for infrastructure and housing, Miguel Pinto Luz, told parliament that in addition to "public meetings" with the three European groups that had already expressed interest in the deal—IAG, Air France-KLM, and Lufthansa—more than a dozen funds, from inside and outside Europe, had also expressed interest.
Gill said this "isn't a bad time to sell" due to the good results the airline has been showing, emphasising connectivity with Latin America as one of TAP's most valuable assets.
The consultant considered consolidation into large groups "an inevitability" in aviation and said he saw similarities between TAP and Aer Lingus, such as their geographical position and proximity to other hubs—Madrid and London, respectively.
He explained that integrating the Irish company into IAG would enable the company to modernise and expand its fleet.
"New aircraft technology can open up opportunities for smaller countries, but you need capital to expand your fleet," he emphasised.
The Irish company's consolidation has allowed it to grow its business significantly in North America. In 2013, seven aircraft covered four destinations. By the end of this year, the carrier will have 29 aircraft flying to 20 North American cities.
*** Lusa travelled to Dublin at the invitation of IAG *** MPE/ADB // ADB.
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