TAP Portugal (Lisbon) backer, the Portuguese government, has laid out the terms of its planned privatization of the carrier from which it will divest a total of 66%. While it will retain a 34% minority shareholding, 61% will go to a strategic investor while the other 5% will go to TAP employees.
According to the terms of an agreement signed between Lisbon and the carrier's unions, government will only be able to divest its remaining 34% stake after a two-year period, and in consensus with the carrier’s unions. Unions will also be involved in any strategic decisions the Portuguese airline makes.
Concerning possible layoffs - a major concern for employees - state secretary for transport, Sergio Monteiro, said: "The agreement (with the unions) guarantees that there will be no collective layoffs for a certain period of time - for 30 months or as long as the state has a stake in the company after this privatisation, whichever is the longest."
Including recapitalization, the private entity that eventually secures the majority 61% in TAP will assume responsibility for its financial liabilities and obligations, estimated to stand at EUR1billion (USD1.14billion).
In its criteria, Lisbon said it would consider a potential suitor's technical and managerial expertise, alongside its reputation and financial standing.
Investors that have reportedly expressed an interest in the airline include Air Europa parent, Globalia Corporacion, Azul Linhas Aéreas Brasileiras, Avianca, Delta Air Lines, Virgin Atlantic, Lufthansa, and British Airways parent, the International Airlines Group (IAG).
