Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) is reported to be a front runner in the race for a 61% stake in TAP Portugal (Lisbon) Portuguese newspaper Expresso has said.
Quoting airline officials close to the carrier's ongoing privatization process, the paper says Fernando Pinto, TAP's president, initiated contact with the Brazilians after a due diligence of all potential suitors showed Azul to be the most suitable.
For its part, as it currently has no MRO facilities of its own, Azul reportedly asked Pinto about TAP's Brazilian Maintenance & Engineering division (TAP M&E Brasil), where it is currently a prominent customer.
TAP management also assuaged Azul management concerns about the European Union's 49% cap on foreign ownership of local airlines with the Brazilians now searching for a potential partner to help push the deal through.
According to the paper, Azul's unique background - a Lusophone company founded and run by US entrepreneur of JetBlue Airways (B6, New York JFK) fame, David Neeleman - would fit well with Lisbon's vision for a revitalized TAP. In addition, its corporate structure and business administration has been held "in high regard" by TAP executives.
Fellow South American contender, Avianca (Bogotá), though touted as a contender, could run into difficulties given that Lisbon's first attempt at privatizing TAP in late 2012 collapsed after sole bidder and Avianca parent, Brazil's Synergy Aerospace, failed to provide the requisite financial guarantees. The collapse of that deal has left a sour impression of the Colombians in the minds of TAP management, the report said.
