‍LISBON — Portuguese President Marcelo Rebelo de Sousa has signed a decree-law launching the privatization process of TAP Air Portugal (TP). 

The Portuguese government is willing to sell up to 49.9% stake in the Portuguese national airline, including 44.9% for potential investors and 5% for the employees. The state will keep the majority stake in the airline.

According to ch-aviation.com, interested parties will have 60 days to prequalify and, afterwards, within 90 days, submit a non-binding offer for acquisition of a stake in TP. 

The government expects to finalize the privatization process by the end of the year. 

Revised Privatization Law

In October 2023, the Portuguese President rejected a decree-law for selling a majority stake of at least 51% citing a lack of transparency and the state’s lack of control over the strategic company.

Following the elections in May 2025, the government restarted the privatization process of TP. The Portuguese Council of Ministers approved a decree for privatization in July 2025. 

Future investors must maintain TAP’s operations out of the airline’s hubs in Lisbon, Porto, and Faro, including routes to Portuguese-speaking countries. TAP brand must be preserved, investors must grow the airline’s fleet, and invest in local Sustainable Aviation Fuel (SAF) production projects.

One of the governmental aims in privatization is to recoup the EUR 3.2 billion investment into TAP made during the COVID-19 crisis.

Interested Parties

At the moment, major European airline groups - Lufthansa Group, Air France-KLM Group, and International Airlines Group - have expressed interest in becoming shareholders in TP.

While TP has returned to profitability and is undergoing privatization, recent news from today indicates that Lisbon has declared the insolvency of the airline's former holding company. This appears to be a separate legal matter from TP's current operational and financial status.