Portuguese gov't authorizes 2nd phase TAP privatization


  • World
  • Thursday, 25 Dec 2025

LISBON, Dec. 24 (Xinhua) -- Portugal's government has launched the second phase of the sale of up to 49.9 percent of TAP Air Portugal, according to a Council of Ministers resolution published on Wednesday.

The state-owned holding company Parpublica has been authorized to invite three interested airline groups - Air France-KLM, IAG and Lufthansa - to participate in the privatization process.

The second phase requires candidates to submit a detailed acquisition proposal following due diligence of TAP's accounts, along with an industrial and strategic plan for the airline.

Candidates will have 90 days to submit their proposals, after which Parpublica will prepare a new assessment report. The government will then issue invitation letters for binding offers, giving shortlisted candidates an additional 90 days to present their final bids.

The government expects to select a winner next summer. It may also choose to enter direct negotiations to seek an improved final proposal.

TAP underwent restructuring after the aviation sector was severely hit by the COVID-19 pandemic, receiving state aid approved under European Union competition rules. The support package included commitments to restructuring and a future privatization process. The Portuguese government formally relaunched the privatization of TAP Air Portugal in July 2025.

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