The Portuguese government has announced plans to privatize TAP Air Portugal by 2024. The airline is currently wholly owned by the government, but it has been struggling financially in recent years. The government believes that privatization will help TAP Air Portugal become more competitive and sustainable. TAP Air Portugal is one of the oldest airlines in the world, founded in 1945. It is the flag carrier of Portugal and operates a network of flights to over 100 destinations in Europe, Africa, and the Americas. The airline employs over 10,000 people and is a major contributor to the Portuguese economy.
In recent years, TAP Air Portugal has been struggling financially. The airline has been hit by a number of challenges, including the global financial crisis, the COVID-19 pandemic, and rising fuel costs. In 2020, the airline reported a loss of €1.2 billion. The Portuguese government has provided TAP Air Portugal with financial support in recent years. In 2021, the government approved a €3.2 billion rescue plan for the airline. The plan includes a debt restructuring and a €1 billion capital injection.
The government believes that privatization will help TAP Air Portugal become more competitive and sustainable. A private owner would be able to inject new capital into the airline and implement cost-cutting measures. The government also believes that a private owner would be more likely to invest in new aircraft and routes. The privatization of TAP Air Portugal is still in its early stages. The government has not yet announced a timetable for the sale of the airline. However, the government is confident that TAP Air Portugal will be privatized by 2024.
What does this mean for passengers?
The privatization of TAP Air Portugal could have a number of implications for passengers. It is possible that fares could increase after the airline is privatized. However, it is also possible that the airline will be able to offer more competitive fares if it is able to reduce its costs. The privatization of TAP Air Portugal could also lead to changes in the airline's network. A private owner might be more likely to cut unprofitable routes or to add new routes that are not currently served by TAP Air Portugal.