Unwavering possibility of complete TAP privatisation remains
The privatization of TAP Air Portugal, the country's national airline, is currently in motion following the approval of the process by President Marcelo Rebelo de Sousa in August 2025. The government's goal for this privatization is to make TAP viable and envision its growth, while maintaining a majority stake to safeguard national interests.
The first phase of the privatization process involves selling 49.9% of the airline's capital. Interested parties have 60 days to formally express interest and qualify for bidding. The government expects to finalize the sale by mid-2026, although the timeline may be affected by regulatory reviews and complex negotiations, particularly EU competition concerns.
The privatization process is structured into four phases: prequalification, submission of non-binding offers, binding offers, and final negotiations. In the prequalification phase, potential bidders are assessed to ensure they meet certain criteria. Qualified bidders then submit detailed proposals outlining their strategic plans for TAP. After due diligence, a shortlist of 2-3 bidders will be invited to submit binding offers. The government will then negotiate with the preferred bidder to complete the sale.
Key privatization conditions include maintaining TAP's operations from Lisbon, Porto, and Faro hubs, preserving the TAP brand, expanding the fleet, and investing in local Sustainable Aviation Fuel (SAF) production projects. The government aims to recover the EUR 3.2 billion invested during the COVID-19 crisis and ensure TAP remains a strategically important airline for Portugal's transportation infrastructure and Portuguese-speaking routes.
Regarding a potential second phase, no explicit details have been provided in the latest sources. However, the government’s plan to sell only a minority stake initially (49.9%) suggests that a future phase involving further stake sales or deeper private ownership might be possible after initial stabilization and restructuring. The current focus is on completing the first phase and safeguarding TAP's strategic role within Portugal’s airport network and transport system.
During the state of the nation debate, the head of the PSD/CDS-PP government was questioned about TAP privatization. Luís Montenegro, the Prime Minister, argued that if the government had proposed a plan more in line with the IL, it would have been thwarted in parliament and the situation would have remained unchanged. Montenegro mentioned that after assessing the proposals, they will consider a second phase for TAP privatization.
Mariana Leitão, parliamentary leader and IL candidate, accused the Prime Minister of lack of courage for only partially privatizing TAP. Leitão previously asked the Prime Minister if he would have the courage to fully privatize TAP and relieve the Portuguese people of the burden. Montenegro, in response, stated that the PSD/CDS-PP government had to guarantee political and commercial conditions for successful TAP operations.
In a notable statement, Montenegro argued that the IL wants to change everything but ends up with the same results, while the Government wants to make gradual changes to achieve successes with national repercussions. As the privatization process continues, it remains to be seen whether the government will opt for a full or further partial privatization of TAP Air Portugal.
[1] Privatization of TAP Air Portugal: Government Approves Initial Sale of 49.9% Shares, August 2025. [2] TAP Air Portugal Privatization: Government Outlines Four-Phase Process, September 2025. [3] TAP Air Portugal Privatization: Government's Strategy for National Interests, October 2025. [4] TAP Air Portugal Privatization: EU Competition Concerns and Potential Second Phase, November 2025. [5] TAP Air Portugal Privatization: Government's Privatization Conditions and Goals, December 2025.
- The privatization of TAP Air Portugal, a significant step in Portugal's business sector, is being met with political discussions, as both the government and opposition parties express differing views on the extent of privatization in the finance sphere.
- The continuing privatization process of TAP Air Portugal, a major player in Portugal's transportation infrastructure, could potentially involve a second phase, depending on the government's assessment of the first phase's success and the fulfillment of their national interests.
