Portugal opens negotiations with Air France-KLM and Lufthansa to privatize part of TAP

The Portuguese government announced this Friday (4) that it has opened negotiations with the Air France-KLM group and the German Lufthansa to privatize part of the capital of the airline TAP Air Portugal.

The Executive's spokesperson, Antonio Leitao Amaro, informed, at the end of a meeting of the Council of Ministers, that there will be negotiations with the two companies, which presented offers at the end of July, to obtain "better proposals".

After these conversations, which could last "a few weeks", the government will choose one of the two interested parties to begin a "final negotiation".

After the announcement, Air France-KLM stated that its participation in this new phase reflected its "permanent and decided interest" in the operation, which foresees the sale of up to 49.9% of TAP's capital, of which 5% is reserved for employees.

"Air France-KLM's offer, presented on July 29, takes the form of a strategic plan that covers all TAP activities: passenger transport, cargo, loyalty program and aeronautical maintenance", announced the conglomerate.

The privatization of the Portuguese airline comes after its emergency nationalization, in 2020, to face the consequences of the Covid-19 pandemic.

In exchange for public aid of 3.2 billion euros (R$19.06 billion), the company had to implement a restructuring plan started in 2021 under the supervision of the European Commission.

The main European operator on routes to Brazil, TAP has around 7,700 employees and a hundred Airbus planes.