Lisbon, Sept. 5, 2025 (Lusa) - The specifications for the privatisation of Portugal's flag carrier TAP stipulate that only applications from airlines with revenues exceeding €5 billion will be considered, in a process that will take place in four phases, according to a government statement.
According to the joint statement from the Ministries of Infrastructure and Housing and Finance, the document, approved on Thursday by the Cabinet, "establishes that the sale of the airline will be directed exclusively at airline operators of a relevant size or groups led by them, requiring as a minimum requirement the presentation of revenues exceeding €5 billion in at least one of the last three years, demonstrating proven experience in the aviation sector".
The ‘suitability and financial capacity criteria’ of the bidders must also be met, the statement said.
According to the authorities, the privatisation process, involving up to 44.9% of TAP to a reference investor and up to 5% to TAP employees, will be conducted in four stages, starting with pre-qualification, with a maximum duration of 60 days.
This will be followed by non-binding proposals, with a deadline of 90 days, and then binding proposals, also with a deadline of 90 days, with the process concluding with a "possible negotiation" phase.
According to information released by the Government, from a technical point of view, "the presentation of an appropriate and coherent strategic project, with guarantees of execution and allocation of resources, which ensures the preservation and promotion of TAP's growth, as well as the price, will be particularly valued".
This project should, according to the authorities, "strengthen the company's competitive position as a global air transport operator, in current and new markets, with particular attention to connections between the main Portuguese airports and the autonomous regions of the Azores Islands and Madeira and Porto Santo Islands, the diaspora and Portuguese Language Countries and communities".
Competitors will also be assessed on the basis of "fleet reinforcement, investment in maintenance and engineering, and commitment to the production of sustainable fuels (SAF/e-SAF), in line with the National Roadmap for the Decarbonisation of Aviation", and "the maintenance of any public service obligations will also be considered".
According to the Government, proposals will also be evaluated based on ‘financial criteria,’ including "the price offered for the shares, guarantees of financial sustainability, TAP’s projected future profitability, and any alternative forms of payment, including performance bonuses and share exchanges."
In addition, "the absence of constraints that hinder the completion of the operation, respect for labour commitments and collective regulatory instruments in force, as well as the prospect of a possible strengthening of the shareholder position in TAP" will be considered, the Government pointed out.
The authorities recalled that it is up to Parpública, the state business management company, to "technically conduct the process," which includes receiving, analysing, and evaluating proposals, as well as preparing contractual instruments.
The Cabinet will have the final say on "the selection of the lead investor", based on Parpública's substantiated reports and the criteria defined in the specifications, and may also "determine adjustments to the process and approve the final terms of the operation".
The authorities have indicated that the process will be monitored by a "Special Monitoring Committee", led by economist and university professor Daniel Traça and also including economists and university professors Luís Cabral and Rui Albuquerque.
The specific terms of the role of the investor chosen in this process will be defined "through a partnership agreement, the draft of which will be made available by the State during the reprivatisation process" for comment and proposals from potential investors.
The publication of the specifications is "the starting point for the formal launch of the first phase of the privatisation of the national airline," it noted, pointing out that it includes the sale of up to 44.9% to a reference investor and up to 5% to TAP employees.
Originally state-owned, TAP was partially privatised in 2015, but the process was reversed in 2016 by António Costa's Socialist government, which took back 50% of the company — a decision that drew criticism due to the financial risk assumed by the State.
Last year, Luís Montenegro's government revisited the issue and expressed its intention to proceed with the sale of a minority stake in 2025. Since then, negotiations have been ongoing with major European groups such as Air France-KLM, Lufthansa and IAG.
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