David Neeleman said today that he plans to float TAP on the Lisbon stock exchange in 2020 and expects a valuation of €1.3 billion.
Gateway, which soon will own 61% of TAP, wants the airline to be quoted on the stock exchange within five years
Gateway, owned 50.1% by Portuguese businessman Humberto Pedrosa and 49.9% by Neeleman, revealed part of the strategic plan for the airline which in the short term involves selling aircraft and leasing them back to raise around €100 million of liquidity.
Diário Económico today commented that in view of these figures, Gateway believes it has a realistic prospect of launching TAP on Euronext, allowing a sale to the public of one of the largest businesses in Portugal.
The sale, if successful, will please the treasury, already under criticism for selling the 61% of TAP for just €10 million.
Currently the taxpayer through Parpública, owns a remaining 34% of TAP which will be worth significantly more if Neeleman’s plan is executed. Gateway has first refusal on the remaining shares which Parpública can sell after two years.
Gateway’s investment in TAP is around €354 million, soon to be eased if the fleet is sold and leased back which Gateway plans to do “within 90 days.”
Gateway also can obtain bank finance of up to €250 million for the period 2016-2017 to buy new aircraft using a 'pre-delivery payment' which also would have been possible if TAP had continued under state ownership.
Now that a skilled businessman is involved, TAP's financing at last should soon be on a firmer footing.
Whether Gateway can work with TAP's nine unions remains to be seen but when airlines are making money, strikes are few and far between.
