BA owner eyes slice of Portuguese airline TAP

International Airlines Group (IAG), the parent company of British Airways and Aer Lingus, has formally entered the bidding process to acquire a stake in Portugal's national flag carrier, TAP. An IAG spokesperson confirmed the submission of a statement of interest to Parpublica, the Portuguese state-owned holding company overseeing the privatization. This move positions IAG as the third major European airline group, alongside Air France-KLM and Germany's Lufthansa, to express formal interest in TAP.

Portugal initiated the long-anticipated privatization of TAP in July, seeking to divest a 44.9 percent stake to a strategic partner capable of enhancing the airline's global reach and competitive standing. An additional 5 percent stake is slated for offer to TAP employees. The Portuguese Government's objective is to secure an investor that will not only inject capital but also preserve and expand TAP's most valuable assets: its extensive network of connections to Brazil, Portuguese-speaking African countries, and the United States, all anchored by its strategic Lisbon hub.

IAG has publicly stated its belief that TAP possesses "significant potential" within its portfolio, emphasizing its track record of investing to strengthen acquired airlines, which benefits customers, employees, local economies, and shareholders. However, the potential acquisition has sparked concerns among some observers who fear that IAG's control could lead to the diversion of key routes from Lisbon to Madrid, the primary hub for IAG's Spanish airline arm, Iberia. The outcome of this competitive bidding process will significantly shape the future landscape of European aviation, particularly regarding transatlantic and African routes.