Lisbon, Dec. 19, 2025 (Lusa) - IAG, owner of British Airways and Iberia, considers the acquisition of a minority stake in Portugal's flag carrier TAP to be problematic, arguing that only a majority position will allow the company to be transformed and operating margins to be increased.
Speaking to Bloomberg TV, the group's chief financial and sustainability officer, Nicholas Cadbury, said that the State's intention to sell up to 49.9% of TAP's capital is a "problem" for the group.
"To raise the current margin of around 8% to the group's range of 12% to 15%, we would need a very clear path to full or majority ownership, which is not currently on the table", he said.
He added that without this possibility, "it will be a difficult deal to close," emphasising the need to work closely with the Portuguese government to understand how to invest and transform the company.
The government announced that it has completed the pre-qualification phase of the TAP privatisation process and has mandated the state business holdings manager, Parpública, to send out invitations for non-binding bids by 2 January.
At a press conference on Friday, the minister of Infrastructure, Miguel Pinto Luz, explained that Air France-KLM, IAG and Lufthansa meet the defined requirements and will move on to the second phase of the process, which is being coordinated by Parpública.
The Minister of Infrastructure, Miguel Pinto Luz, highlighted "the economic and financial health of TAP," considering the attraction of large European groups to be positive, and expressed confidence that non-binding bids would be received by the first quarter.
In response to the announcement, Air France-KLM today expressed its satisfaction at having been pre-qualified for the second phase of TAP's privatisation, reiterating its strong interest in the Portuguese airline.
Through the acquisition of a stake in TAP, the Franco-Dutch group assures that it intends to "further increase its contribution to the Portuguese economy and create value for TAP and the country".
Non-binding proposals, which must be submitted to Parpública by 2 April, must include a financial component, including the price offered for the shares, as well as additional enhancement mechanisms, such as earn-outs, which provide for future payments depending on the company's performance.
Interested parties must also indicate the future enhancement prospects of the remaining stake and any alternative forms of payment, such as share exchanges.
In addition, they must also submit non-binding technical proposals, with an industrial and strategic plan for TAP, a preliminary vision of synergies and benefits for the company, and guarantees of preservation of its status as a European Union air operator.
The specifications provide for the sale of up to 44.9% of TAP's capital, with 5% reserved for employees, with any unsubscribed shares subject to the future buyer's right of first refusal.
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