The government announced the sale of 51% of TAP

This Thursday, the government approved a decree-law establishing the conditions for the privatization of TAR. This was reported in the Council of Ministers.

Finance Minister Fernando Medina justified this decision by the strategic goals that the state pursues when selling shares of the Portuguese airline. It is planned to sell 51% of the capital, but the possibility of increasing this share is not excluded.

“This is necessary in order to better serve the country and the national economy,” he assured.

Among the Executive’s key objectives in approving this award is the growth of TAP and Hub, ensuring investment and more vacancies in the aviation sector, as well as increased operations at the nation’s airports.

“The goal is also for TAP to continue to grow significantly (…) Portugal would not have achieved economic results if TAP had not acted positively and presented results,” he stressed.

Medina assured that the government is interested in ensuring that investments do not negate the airline’s strategic contribution.

“We don’t need aviation investors, and we don’t need financial investors who intend to sell TAP later. The purpose of privatization is to benefit Portugal by having an airline,” he said.

Regarding the capital that will be sold, the executive clarified that the percentage that will be sold has not yet been determined. “It could be 51%, 60%, 70%, 80% or even 100%,” he noted.

“The government will retain the percentage that it considers appropriate and necessary to achieve certain strategic goals. A higher percentage may be required. Everything will depend on how we weigh the interests,” he explained.

The TAR privatization process is expected to be completed by the end of the first half of 2024.

At a time when interested parties are beginning to emerge in the purchase of the airline, which returned to state control in 2020, this document defining the conditions for the privatization of TAP will have to be made public by the President of the Republic, Marcelo Rebelo. de Souza, who had already approved the sale.

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Bernardo Blanco, a Liberal Initiative MP, believed that TAP should be sold 100% and the money should be given to the Portuguese. He proposes declaring some sort of “TAP check” similar to the 125 checks provided last year.

“We were surprised that the government announced the sale of the company so quickly, but it took so long to sell it. Obviously they want the cost to be as high as possible. But we are not naive and understand that this decision is related to the elections of the European Championship next year.[O Conselho de Ministros] It didn’t do much good. Only one intention was explained. The government must admit that the Portuguese have lost money,” the liberal said.

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Andre Ventura, Chega’s leader, said the government had not specified what agreement it had reached on compensation.

“The new private owners of TAP must guarantee compensation amounts. After the injection of 3.2 billion euros, this is unacceptable,” he said.

POT

A PAN spokesman suggested that the Office of Political Accounts and Finance oversee TAP’s privatization process to ensure “full transparency” and said the deal could not lead to “harm to national interests.”

“Its privatization now cannot mean harm in relation to the money that was invested, and after this privatization will again lead to an outflow of public money that was withdrawn from structural areas such as housing, health or investments such as public transport, such like a railroad,” said Ines Souza Real.