The privatisation of national airline TAP will only proceed when the government feels that "the proposals are as advantageous for the interests of the country, as for the company."
Minister for the Economy Pires de Lima today said there is "no rush and no urgency" in the privatisation of the airline, "It will only occur when all the conditions for its success are reasonably assured."
"Our vision for TAP is one that serves the strategic interests of Portugal. It has to be privatised with strategic assurances that the company continues to have a Portuguese brand and a guarantee that the Lisbon hub for Africa and for Latin America remains."
The minister was answering questions during a meeting of the parliamentary committee for the economy and public works, which took place in Lisbon today.
"TAP is the largest carrier in Brazil with almost 90 weekly flights. This is more than Iberia and Air France manages together to Brazil," said Lima.
The minister defended the need to privatise the airline in order for the company to become more competitive in the global aviation market, "To continue to develop and grow, TAP must increase its capital in order to be more aggressive in expanding routes and to compete with international companies."
"This is the vision for TAP, it should have sufficient capital to continue to grow, but with control of its strategic activities so it can continue to be a good national company.”
In April, Secretary of State for Transport Sérgio Monteiro said that TAP "is worth more this year than it has been in previous years. Revenue per seat also is higher which means the company has been generating value," adding that if the airline was privatised it "could generate more if it had a shareholder with the ability to capitalise, the state has no capacity nor legally can do this."
Bidders lining up include Qatar Airways and Gérman Eframovich’s Synergy Group Corp. from South America, both are interested in entering into formal negotiations for the acquisition of TAP.
A latecomer with a colourful background is Francisco Anthony "Frank" Lorenzo who gained a reputation for union busting, stemming from his leadership during the 1983 bankruptcy of US-based Continental Airlines.
Lorenzo also was involved with the strike and eventual bankruptcy of US-based Eastern Airlines which closed in 1991.
Many at the time accused Lorenzo of selling off assets and transferring Eastern's aircrafts to Texas Air, other accusations included depleting Eastern Airline's pension fund.
Perhaps Pires de Lima would prefer a takeover from a company or individual with a less controversial track record. Until this happens, TAP increases in value and the man in charge now is under no Troika pressure to sell TAP at all.
See also: http://www.algarvedailynews.com/news/2520-government-entertains-tap-bid-from-controversial-american
