Airlines

IAG joins race to bid for stake in Portugal's state airline TAP

2 min readmarketscreener.com
IAG joins race to bid for stake in Portugal's state airline TAP
IAG joins the fierce bidding war for Portugal's TAP Air Portugal. What makes it a strategic prize?

Key Points

  • 1IAG confirms interest in acquiring a stake in Portugal's state-owned TAP Air Portugal, joining a competitive bidding war.
  • 2IAG cites TAP's "significant potential" and aligns its decentralized model with the Portuguese government's protection ambitions.
  • 3Deutsche Lufthansa AG and Air France KLM SA are also vying for TAP, with the Portuguese government planning to sell 49.9% by year-end.
  • 4TAP Air Portugal carried 16.1 million passengers in 2024, serving over 80 destinations, making it a strategic asset.

International Consolidated Airlines Group (IAG) has officially confirmed its interest in acquiring a stake in Portugal's state-owned carrier, Transportes Aereos Portugueses SA, widely known as TAP Air Portugal. This move positions IAG, the parent company of British Airways, Iberia, Aer Lingus, and Vueling, as a key contender in a burgeoning bidding war for the strategic airline. The confirmation follows similar expressions of interest from major European rivals, Deutsche Lufthansa AG and Air France KLM SA, signaling a significant consolidation trend within the continent's aviation sector.

IAG's spokesperson articulated the group's belief in TAP's substantial potential within its existing portfolio. The London-based conglomerate emphasizes its proven, decentralized operational model, which consistently delivers industry-leading margins. This approach, IAG asserts, aligns directly with the Portuguese government's stated ambition to safeguard TAP's identity and operations. While expressing strong interest, IAG also indicated that "several terms" require resolution before it can formally propose an investment, underscoring the complexities inherent in such a high-profile acquisition.

The race to acquire TAP intensified with IAG's submission of a statement of interest to Parpublica, TAP's holding company, adhering to the Portuguese government's part-privatization process. This follows earlier declarations from Germany's Deutsche Lufthansa AG and France's Air France KLM SA, both of whom have also signaled their intent to bid. The deadline for these initial expressions of interest is set for Saturday, November 22, 2025.

The Portuguese government, led by Prime Minister Luis Montenegro, announced its plan in July 2025 to divest 49.9% of TAP Air Portugal by the close of the year. This partial privatization aims to inject capital and strategic direction into the airline. TAP Air Portugal demonstrated its market reach by carrying approximately 16.1 million passengers in 2024, serving over 80 destinations across Europe and Brazil, making it an attractive asset for major airline groups seeking to expand their networks and market share.

Topics

#IAG#TAP Air Portugal#privatization#airline acquisition#Europe#business strategy

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