TAP Portugal has been sold

[EBKT]

TAP suitors get ready to bid
Thursday, 12 May 2011
Reports say at least two potential airline bidders - and probably more - are interested in purchasing state-owned TAP Portugal.
TAM Brazil and Europe's International Airlines Group (IAG) are understood to be preparing offers for the carrier, while Germany's Lufthansa executives have signalled heightened interest in the Latin American market in general - one of TAP's strongest regions.

TAP is one of the state-owned companies that Portugal has to sell as part of its EUR78 billion European Union-led bailout.

TAP posted a record EUR62.3 million profit in 2010 thanks in part to restructuring and its exposure to the Latin America-Europe long-haul market.

Analysts say both TAM and TAP are Star Alliance members, but TAM will find hurdles in its way, despite the logic of a bid.

TAP is strong between Europe and Brazil, as is TAM, so the Brazilian carrier would benefit from more power in an important long haul market.

But EU rules limit any foreign (ie, non EU) shareholding in European airlines to 49 per cent and also, a TAM buy could attract interest from competition bodies in Europe and in its own home region.

source: http://www.impactpub.com.au/aircargo/in ... &Itemid=60

[EBKT]

But interest as well from BA/Iberia:

International Airlines Group, the corporate identity of merged carriers BA and Iberia, may be lining up a bid to purchase TAP Portugal, according to a report in The Sunday Times.

The newspaper cites industry sources saying that informal talks have been held. The Portuguese government has been forced to privatise a number of national companies including energy firms and TAP Portugal, as part of the country's bailout by the EU and IMF.

Brazilian airline TAM is also thought to be interested in purchasing the Portuguese flag carrier.

Back in January when BA and Iberia formerly merged, IAG's CEO Willie Walsh said that the two carriers "won't be the last within the group".

"Our goal is for more airlines- but, importantly, the right airlines – to join the group," said Walsh. "Today is the first step towards creating a multinational multi-brand airline group”.

Speaking at this weekend's Advantage Conference in Madrid, BA's head of sales and marketing UK Richard Tams reiterated these thoughts, saying that the recent BA / Iberia merger is "the first step to something much bigger", and adding that the International Airlines Group is "creating a platform for greater consolidation".

Our sister website abtn.co.uk was at the conference - for a full report click here.

For more information visit iairgroup.com, ba.com, iberia.com, flytap.com.

source: http://www.businesstraveller.com/news/i ... p-portugal

[BrightCedars]

Interesting developments ahead! Who can tell which way it will go? I can't make up my own mind what would benefit TAP more between LH and BA-IB, and what about other suitors? AF-KL could play along, it would be a nice addition to their group as well.

[cnc]

my bet is on IAG

[kiwiandrew]

my bet is on IAG

I think you are right , but I hope you are wrong . Imagine what would happen to pax who have to go to South America frequently if you had IB/TP/BA LAN/JJ and AA all working together . OW already is a massive player to/from and within South America , if they were to get JJ ( seems almost certain if LATAM is allowed to go head ) and TAP in addition it would be very bad for the consumer .

[sn26567]

British Airways owner eyes TAP as next target

British Airways’ parent firm has reaffirmed its interest in Portugal’s TAP airline if the country’s government sells the airline.

IAG, which also owns Iberia, is due to complete its purchase of Bmi from Lufthansa later this month which will increase its number of slots at Heathrow to more than 50%.

Chief executive Willie Walsh admitted IAG’s interest in buying TAP last year as part of the company’s drive to further consolidate the European airline market and he reconfirmed this position in IAG’s annual report which was published last week.

“TAP has an extensive network into Brazil and Africa, two strategically important markets for IAG. If privatisation goes ahead we would want to look more closely, but there’s no guarantee we would bid.”

Another goal for Walsh is finding a domestic partner in China for the Oneworld alliance, which left it at a disadvantage to its major competitors – Skyteam and Star Alliance which already have Chinese member airlines.

IAG has also been linked with taking potential stakes in fellow Oneworld members American Airlines and Japan Airlines (JAL). American is still in Chapter 11 bankruptcy protection in the US while JAL came out of bankruptcy last year and is expected to file for an initial public offering (IPO).

Source: ABTN

[andorra-airport]

Another goal for Walsh is finding a domestic partner in China for the Oneworld alliance, which left it at a disadvantage to its major competitors – Skyteam and Star Alliance which already have Chinese member airlines.

I guess Dragonair as oneworld affiliate does not count?

[sn-remember]

Avianca have expressed interest too ..
However it would be difficult given the EU ruling out foreign continent ownership. Still they could control a majority on the board.
TP is in perfect condition to be sold ... The Bride Is Too Beautiful
LH appears the mots logical bidder but have become sooo German centric lately ...
IAG are aware the piece will be difficult to swallow at some Brussels headquarters.
And while SkyTeam have not had their last say, I don't see AF stepping in .. 2 much pbls on their own.
Wait and see ...

[sn26567]

Now apparently Lufthansa jumps in. It is too risky to let the whole Iberian peninsula with its precious routes to the fast-growing South American market entirely in the hands of IAG. Hence, Lufthansa is said to have made a bid on TAP Air Portugal. This way TAP would also remain in the Star Alliance, but the offer opens the way for a bidding war between the two Groups.

All this is according to a report today in The Financial Times, open only to subscribers.

Furthermore, both the Star Alliance and Oneworld are courting Latam Airline Group, the planned large new carrier created from a merger between LAN (Chile) and TAM (Brasil). Latam’s future decision on an airline alliance will probably influence whether Lufthansa and IAG pursue an acquisition of TAP.

[RoMax]

Now apparently Lufthansa jumps in.

Lufthansa was always in for this deal, they've just never admit it before. Each airline they are/were interested in is for a very important reason: BMI for their LHR slots (now BMI has been sold, but several slots stayed behind in the LH Group), Brussels Airlines for their strength in Africa, TAP for their strength in Brasil and Swiss/Austrian seem 'logicall' moves as they are based in German speaking countries and they are simply important for the Central-European region.

About TAP, they can't risk to loose the Spanish/Portugese- Latin American market completely. Probably they'll already lose TAM to Oneworld, losing TAP to IAG would be another big loss.

[LJ]

Another goal for Walsh is finding a domestic partner in China for the Oneworld alliance, which left it at a disadvantage to its major competitors – Skyteam and Star Alliance which already have Chinese member airlines.

I guess Dragonair as oneworld affiliate does not count?

Dragonair is based in Hong Kong, which isn't considered China in the aviation world.

On topic
My bet is on LH. They have a lot to loose as the chances of LATAM joining Star are very small.

AF-KL could play along, it would be a nice addition to their group as well.

They won't. AF/KL have troubles of their own and investing in an airline is hard to sell when you need the resources for yourself.

BTW what happened to the Angolan investment company, which is rumored to be interested as well.

[sn26567]

TAP Portugal (TP) also seems to be of interest to Delta Air Lines (DL) and Virgin Atlantic (VS) which both are contemplating placing bids for the Portuguese national carrier and South African Airways (SA) carrier in the upcoming privatization process, according to a news report by Expresso published in Portugal.

Source: CH-Aviation

[sn26567]

TAP Portugal is no longer of interest to International Airlines Group, the parent of British Airways and Iberia, according to a news report by Bloomberg. IAG had previously publicly declared its interest in acquiring the Portuguese national carrier that is currently in the process of being privatized.

Source: CH-Aviation

[RoMax]

According to Portugese media:

9 airlines/financial groups were interested in TAP, but only 3 of them placed official non-binding bids. The only confirmed group that's being confirmed is German Efromovich's Synergy group (which owns AviancaTaca), the other two are not known, but said to be an Asian airline/group (Etihad or Qatar) and a Chinese group.

Other airlines like Lufthansa, IAG, LANTAM, Delta, ... didn't place a bid for TAP and are not interested anymore.

[sn26567]

European airlines seem no longer interested. Brazil might be the winner.

Air France-KLM Group, Deutsche Lufthansa SA and British Airways parent IAG failed to bid by a deadline last week. Among non-binding offers was one from Brazil’s Synergy Group, owner of the Avianca airline brands.

European airlines attracted by TAP’s South America routes are preoccupied with absorbing earlier purchases, and Lufthansa may also be standing aside because its Star Alliance, which currently includes TAP, features an Avianca sister company.

[RoMax]

The owner of the Avianca-TACA group has been in pole-position since weeks. That's a huge relief for Lufthansa as TAP will probably stay in Star Alliance.
LH is for sure interested in airlines like TP, SK, ... But they are simply not in a position currently to do this. It's already difficult enough for themselfs to return to profit, LX is not that profitable anymore like some years ago, OS continues to struggle and they still have to integrate SN.

[Air Key West]

The Portuguese government was to make a decison today, December 20, on the sale of Portuguese airline TAP. Because only one bid was received and because of criticism of opposition parties and TAP employees concerning the transparency of the procedure, the government decided to suspend the sale of the airline.
The only offer made came from Brazilian-Colombian millionair, Efromovich, who now seems to seek Polish citizenship (his grand-parents were Polish) in order to circumvent EU legislation limiting ownership of an EU airline to 49% of the shares.

[CS-TMX]

The offer was rejected today.

[sn26567]

Avianca preparing second bid to acquire TAP Portugal

Avianca Brasil (O6) is reportedly in the process of preparing a second bid for Portuguese national carrier TAP Portugal (TP) after a first bid had failed in December when the Portuguese government decided not to sell TAP to Avianca Brasil parent Synergy Aerospace.

Synergy owner Gérman Efromovich has met with the Brazilian government to get support for a proposed second bid, this time by Avianca Brasil, according to aeroTELEGRAPH and Folha de São Paulo. Synergy Aerospace is the majority shareholder in Avianca-TACA and fully owns Avianca Brasil.

Source: ch-aviation

[CS-TMX]

Synergy owner Gérman Efromovich has met with the Brazilian government to get support for a proposed second bid, this time by Avianca Brasil, according to aeroTELEGRAPH and Folha de São Paulo.

This was already denied. I believe it will take some time until a new process of privatization is set up.