Greybull Capital LLC, the London-based investment fund that acquired a controlling 90% stake in struggling Monarch Airlines (1968) (London Luton) in October last year, is one of three such firms to have expressed an interest in Lisbon's ongoing bid to privatize national carrier TAP Portugal (Lisbon).
With the submission of bids set to close later this week, Portugal's Publico newspaper reports Greybull, US Apollo Global Management and another unknown entity have signed a confidentiality agreement with the Portuguese government. Other firms that have reportedly signed the agreement include Brazilian carrier GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas), Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) founder and CEO David Neeleman, Portuguese businessman Miguel Pais do Amaral, a consortium that includes the American millionaire of Continental Airlines (Houston Intercontinental) and Eastern Air Lines (1926) (New York JFK) fame Frank Lorenzo, and Portuguese logistics group Barraqueiro.
Avianca (Bogotá) Group founder Germán Efromovich has also signed the document and was reported to have held talks with Portuguese Transport Ministry bureaucrats last week, a move the latter have since denied.
Last week, TAP airline pilots held a 10-day strike claiming government had reneged on a 1999 deal they say entitled them to a stake in the airline in the event of privatisation. Lisbon is offering a 61% stake to a strategic investor with staff to retain a 4% shareholding in the airline.
Though the industrial action cost the carrier EUR35 million (USD38.9 million) in lost revenue and expenses, government has insisted it will push on with its divestiture. It has warned, however, that if privatization fails then it will be forced to undertake its own cost-cutting measures involving network rationalization and staff layoffs.
