Now that the April 2 deadline for submission of bids for TAP Air Portugal (TAP) has passed, The Engine Cowl recaps the status of the airline’s reprivatization process and next steps.
Reminder: TAP’s current ownership structure
The history of TAP’s ownership structure in the past decade is somewhat of a roller-coaster.
In November 2015, 61% of the airline was sold by the Portuguese government to Atlantic Gateway, a consortium led by David Neeleman, founder of jetBlue, Azul Brazilian Airlines and Breeze Airways, and Humberto Pedrosa, CEO of Grupo Barraqueiro, a Portuguese transportation conglomerate.
In June 2017, the Portuguese government reached an agreement with Atlantic Gateway to increase the state’s ownership back to 50%, leaving Atlantic Gateway with 45% of share capital but retaining 90% of the economic rights.
In July 2020, the Portuguese government bought out David Neeleman’s stake in the business as part of a Covid rescue plan, bringing its stake to 72.5%. Humberto Pedrosa continued to hold a 22.5% stake, albeit in a personal capacity rather than through Atlantic Gateway.
In November 2022, the airline went through an “accordion operation” whereby existing equity-holders were wiped out and the company was recapitalized solely by the Portuguese government. This left the company in 100% public ownership.
Now, the government wants to partially reprivatize TAP and recover some of the €3.2 billion ($3.7 billion) in cumulative state support invested in the airline between July 2020 and January 2025.
How much of TAP Air Portugal is for sale?
The government is offering 44.9% of TAP Air Portugal for direct sale to a new investor or consortium. An additional 5% will be offered to employees.
The government will retain 50.1% ownership. All or part of this majority stake may be sold at a later date.
Why TAP is important in the European competitive landscape
- Lisbon is a heavily slot-constrained market and TAP holds 46% of slots at the airport, according to a company overview published in September 2025 by Parpública, a state holding company belonging to the Portuguese government.
- TAP runs a unique network connecting Brazil and Europe. The airline operates 14 destinations in South America of which 13 are in Brazil. 9 of those routes are uniquely operated by TAP.
Who has submitted bids for TAP?
Parpública confirmed in a statement on April 2 that two bids have been submitted for TAP: one bid from Air France-KLM and one from Lufthansa Group.
The terms of each bid have not been disclosed publicly.
Despite earlier interest in acquiring TAP, IAG did not submit a proposal.
Next steps in the selection process
Within 30 days of April 2, Parpública will prepare a report for the government outlining the key terms and merits of each bid.
Bids will be evaluated according to the selection criteria detailed in Article 5 of Resolução do Conselho de Ministros n.º 141-B/2025, the resolution governing the terms of reference for the share sale.
Rytis Beresnevicius
