IAG confirms interest in TAP privatisation but seeks clarity before making an offer

International Airlines Group (IAG) has formally expressed interest in the Portuguese government’s planned privatisation of TAP, becoming the third major airline group to do so after Air France–KLM and Lufthansa. However, the parent company of British Airways, Iberia, Vueling, Aer Lingus and LEVEL emphasised that “several issues need to be clarified before IAG can propose an investment”.

The airline group said TAP “has significant potential within IAG”, highlighting its track record of strengthening acquired carriers for the benefit of customers, staff and local economies. But the privatisation lands after years of heavy state support for TAP, with public spending far exceeding the €3.2 billion restructuring package approved by Brussels. Former prime minister António Costa once suggested the government would be “lucky” to sell the airline for €900,000 — long before the state opted to put just 44.9% of TAP up for sale.

State holding company Parpública now has 20 days, until 12 December, to assess the interested parties and determine whether they meet the participation criteria. Eligible bidders will then be invited to submit non-binding offers, including proposed pricing and details of financing sources.

Applicants — domestic or international, individual or as consortia — must meet strict thresholds, including generating more than €5 billion in annual revenue in at least one of the past three years and demonstrating proven aviation experience. Proposals will be evaluated on commitments to fleet growth, investment in engineering and maintenance, sustainable aviation fuels, labour obligations, and long-term shareholding strategy.

The government has previously said that the TAP privatisation process, which also encompasses Portugália, the TAP Healthcare Unit, Cateringpor and SPdH, will take around a year. But given the complexity and political sensitivity of the sale, the timeline may yet stretch beyond that.

Source: Portugal Resident