IAG, parent company of British Airways, aims to bid for a stake in Portugal’s TAP, competing with Air France-KLM and Lufthansa.
View more
British Airways’ parent company IAG said it aims to join the bidding process for a stake in Portugal’s TAP, as it contends with Air France-KLM AF and Deutsche Lufthansa for a slice of the state-owned carrier with coveted routes bridging Europe and Latin America.
International Consolidated Airlines Group —which houses carriers like British Airways, Iberia and Vueling—said Friday that it had submitted its interest to state-holding company Parpublica, seeking to join TAP Air Portugal’s privatization. IAG didn’t disclose financial details.
“Several terms would need to be addressed before IAG could propose an investment,” the group added.
IAG’s submission comes after Air France-KLM and Lufthansa said earlier this week they had put forth statements formally expressing interest in purchasing a stake in TAP.
In July, Portugal’s government said it would shed a 49.9% stake in TAP, reserving 44.9% for private investors and 5% for company employees. Officials have been mulling over a partial sale of the national carrier for years.
One of the terms of the sale requires buyers to keep the main hub for TAP in Lisbon. IAG said its decentralized model aligns with the Portuguese government’s intent to protect TAP, adding that it would have significant potential within the group.
TAP could be a linchpin for routes linking Europe and Latin America, prized for its access to the Latin American market, both Air France-KLM and Lufthansa have said.
Excerpt from WSJ
Read the full article