TAP due to be upgraded and possibly privatisedCredit: TAP Air Portugal Media Centre
The airline industry is one that is potentially highly profitable yet can see enormous losses when disasters such as the pandemic and erupting volcanoes occur.
For decades, state owned airlines were the norm with some low cost independents such as easyJet and Ryanair stepping up to take advantage of the growing need for people to travel the world.
It has become obvious that in what has become a very ‘cut throat’ business that size and adaptability are crucial and one of the first companies to recognise this was IAG which now owns Aer Lingus, British Airways, Iberia and Vueling as well as freight companies.
Air France-KLM CEO has eyes on TAP Air Portugal in order to continue airline group expansion
More recently, the amalgamation of Air France and KLM has seen a new European giant emerge which operates a fleet of 551 aircraft (divided between Air France, KLM Royal Dutch Airlines, and Transavia).
It has already obtained a 19.9 per cent non-controlling stake in the share capital of Scandinavian airline SAS AB but has an even greater acquisition as a target.
Air France-KLM CEO has eyes on TAP Air Portugal should it be privatised
With the apparent support of French President Macron, Air France-KLM CEO Ben Smith wants to see his organisation take over state owned TAP Air Portugal which has a strong roster of destinations across holiday hotspots in Africa and South America with Brazil being a top destination.
There had been some talk of privatisation of TAP under a previous government which has been vetoed at the time but now Portugal has made it clear that it is seriously considering privatisation although it may only be prepared to sell off 49 per cent and retain the majority shareholding.
With airport expansion at Lisbon and other Portuguese hubs, the outlook for an updated and possibly completely overhauled TAP is looking positive with probable movement by the end of 2026.
