Privatisation of Portugal's TAP delayed, expected 'before October' - minister
Reuters
Published Jul 12, 2023 09:45
LISBON (Reuters) - The privatisation of Portugal's state-owned airline TAP will take place before October instead of starting in July as the government had originally planned, Infrastructure Minister Joao Galamba said.
In April, the government said that the sale would start in July after two independent advisers established the airline's value, but state holding company Parpublica only hired Ernst & Young and Portuguese bank Banco Finantia to value it last week.
The government has said it intends to keep a strategic stake in the state carrier, which is currently being restructured under an EU-approved 3.2 billion euro ($3.53 billion) rescue plan.
At least three major global carriers - IAG (LON:ICAG), Lufthansa and Air France-KLM (LON:0LN7) - have so far shown an interest in the airline
Speaking at a conference hosted by broadcaster CNN Portugal late on Tuesday, Galamba said that all the conditions of the sale will be set out in a government decree, which will initiate the privatisation.
"We are focused on the privatisation process, but the approval (by the government) of the decree will not be this month. It will certainly be before October," he said, without providing further details.
TAP carried 7.58 million passengers in the first half of this year, a 30% increase from a year ago but still slightly below pre-pandemic levels even as tourist numbers have already exceeded those seen in 2019.
The airline reported a net loss of 57.4 million euros in the first quarter of this year, a drop of more than 50% from the loss in the previous year, due to increasing passenger numbers.
($1 = 0.9067 euros)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.