Lisbon, July 10, 2025 (Lusa) - The Luís Montenegro government approved a decree-law on Thursday  that begins the reprivatisation process of TAP, planning to sell up to 49.9% of the capital of a company with decades of advances, setbacks and controversy surrounding its public or private future.

The history of the Portuguese airline is marked by cycles of expansion, crisis and public intervention. Founded in 1945, TAP began operations on 19 September 1946 with a flight between Lisbon and Madrid. After the 25 April revolution, the state nationalised the company in 1975 and acquired it in full.

The idea of privatisation first arose in 1991, during the Cavaco Silva government, and it came to fruition decades later after successive restructuring plans and several attempts to sell the company. The parties agreed on Swissair’s entry in 1998, and the deal subsequently evolved in a different direction.

The financial crisis of 2009, pressure from the ’troika’ in 2011, and accumulated difficulties led to a new attempt in 2012, which stalled because businessman Germán Efromovich did not provide the necessary guarantees.

In 2015, the Atlantic Gateway consortium, led by David Neeleman and Humberto Pedrosa, finally privatised TAP, acquiring 61% of the capital.

António Costa’s government arrived in power and revised the model, enabling the state to regain majority control. During the 2020 pandemic, the state renationalised TAP, acquiring David Neeleman’s stake and strengthening financial support for the company, which was meanwhile subject to strict rules from Brussels.

Since then, the company has continued to restructure and address controversy, including million-euro compensation to former administrator Alexandra Reis and the dismissal of CEO Christine Ourmières-Widener in 2023, following a report by the Inspectorate-General of Finance (IGF).

The sale process, now relaunched, allows for the disposal of up to 49.9% of the capital, with potential interested parties, including Lufthansa, IAG, and Air France-KLM, closely following developments. The operation is starting in a sensitive political context, following early legislative elections and with TAP still subject to monitoring by the European Commission.

Below is a chronology of events, from the airline’s foundation to the relaunch of the sale, including some key moments that have led the airline to its current situation.

+++ 1945 +++

TAP (Transportes Aéreos Portugueses) was created on 14 March 1945 and began commercial flights on 19 September 1946, with its first route between Lisbon and Madrid using a DC 3.

+++ 1975 +++

After 25 April 1974, TAP became wholly state-owned. In 1975, the State took control of the company as part of a broader process of nationalisation during that political period.

+++ 1991 +++

The Cavaco Silva (PSD) government announced for the first time its intention to partially privatise TAP, with the State retaining at least 51% of the capital. The company became a public limited company, paving the way for private investors to enter.

+++ 1994 +++

The European Commission approves TAP’s Strategic and Economic-Financial Recovery Plan (PESEF), marking the beginning of a profound restructuring, essential to restore viability before any privatisation.

+++ 1998 +++

The Swiss airline Swissair is selected to acquire 34% of TAP. However, the partners agree on a later date because the partner experiences financial difficulties and political obstacles arise.

+++ 2000 +++

Fernando Pinto, with experience at Varig, joins TAP to lead the airline and complete the privatisation, and the parties agree to postpone the deal with Swissair. His management marks a significant phase in internal restructuring.

+++ 2006-2007 +++ 

TAP acquires Portugália and the former VEM, thereby increasing its operational and maintenance capacity and preparing for market competition.

+++ 2009+++

The global financial crisis led TAP to record significant losses - almost €290 million - which motivates the state to move forward with privatisation.

+++ 2011 +++

As part of the financial assistance programme with the ’troika’, the authorities list TAP among the assets to be privatised. The measure aims to reduce public spending and attract foreign investment.

+++ 2012 +++

The Passos Coelho government launched the privatisation process, and Germán Efromovich emerged as the sole candidate. However, the parties rejected the proposal that same year because it required more guarantees.

+++ 2015 +++

The Atlantic Gateway consortium, led by David Neeleman and Humberto Pedrosa, acquired 61% of TAP, with the State retaining 34% and employees 5%.

+++ 2016 +++

Three months after privatisation, the new government of António Costa decided to change the model, reducing private participation to 50%, and formalised the new agreement, which the government implemented in 2017.

+++ 2020 +++

With TAP facing the pandemic’s challenges, the state buys David Neeleman’s stake for €55 million, giving it a 72.5% stake in the company. Humberto Pedrosa remains a minority shareholder.

+++ 2021 +++

Lufthansa expresses preliminary interest in acquiring 19.9%of TAP Air Portugal as part of the airline’s privatisation plan, and the companies agree to continue discussions. 

+++ 2022 +++

On 1 January 2022, the company announced the closure of TAP Manutenção e Engenharia in Brazil (formerly VEM) due to the operation accumulating significant losses.

In February the same year, the European Commission demanded cost cuts as a condition for approving TAP’s restructuring plan, reinforcing Lisbon as a hub and requiring half-yearly reports until 2025.

In July, the company announced that Humberto Pedrosa had transitioned out of his shareholder role. The state prepared to convert €224 million in ancillary payments into capital, further diluting the position of small shareholders and workers.

On 24 December 2022, the newspaper Correio da Manhã reported that Secretary of State Alexandra Reis received compensation of €500,000 following her departure from the airline’s Executive Committee in February, a move the management itself allegedly deemed incompatible.

+++  2023 +++

On 6 March 2023, following a report by the Inspectorate-General of Finance (IGF), Fernando Medina and João Galamba announced the dismissal of CEO Christine Ourmières-Widener and Chairman of the Board of Directors Manuel Beja for just cause.

In the same year, the board appointed Luís Rodrigues as the new CEO, and he assumed his duties on 14 April. The Parliament also established a Parliamentary Inquiry Commission (CPI) to investigate the management of TAP.

In October, the president of Portugal vetoed the decree-law that António Costa’s government drafted to start the privatisation of TAP. Marcelo Rebelo de Sousa decided to return the decree, which the Council of Ministers approved on 28 September of that year, stating that it “requires further clarification to ensure the desired maximum transparency of the process”.

+++ 2024  ++++

The Portuguese government is once again preparing to privatise TAP. Groups such as Lufthansa, Air France-KLM and IAG have expressed interest. However, following the fall of António Costa’s government (PS), the process is on hold.

+++ 2025 +++

The Luís Montenegro government resumes the process of selling to private investors, and the early legislative elections in May this year temporarily suspend the initiative.

The government took the first step towards the sale today by approving a decree-law that establishes the opening of 49.9% of the share capital to private investors, with 5% reserved for employees.

The president of Portugal must also approve the decree-law.

The prime minister stated that the government can halt the process and withhold compensation from interested parties unless it believes the proposals adequately safeguard the country’s strategic interests.

The potential buyer must maintain the hub and strategic routes, and observers regard these commitments as essential guarantees for the sale of the airline to go ahead.

SCR/ADB // ADB.

Lusa