TAP bids may not be high enough

The two possible buyers for state airline TAP both submitted enhanced bids before the deadline last Friday.

In the biggest hint yet that the bids may not be enough, the Secretary of State for Transport, Sérgio Monteiro, said on Saturday that the intention of the government is “to decide as soon as possible whether to sell the airline or not.”

Both proposals contain "changes in the strategic project" but Monteiro said that the real question is whether the financial aspects of the offers will be sufficient for the government to let go the 61% owned by the taxpayer.

Monteiro said that this matter should be decided at the next Council of Ministers meeting on June 11th but added that a report from Parpública would be needed before the meeting.   

The head of the Brazilian airline Azul, David Neeleman, who already has indicated that he would buy 53 new aircraft to add to the TAP fleet, said that his proposal represents an investment and a commitment to TAP’s growth.

Germán Efrómovich (pictured), the head of airline Avianca and of the Synergy Group submitting the bid, said that his offer ensured an ‘enhanced financial standing’ for TAP as well as offering commitments on job security.

Sérgio Monteiro claimed not to know the details of the two new offers and is waiting for Parpública to present the information.

Monteiro advised, "We will see whether or not we have the reports in time for the Council of Ministers meeting," adding that he could not be certain whether or not the timetable for privatisation could be adhered to, or whether it would go ahead at all.
 
Regarding the restructuring plan requested of TAP president Fernando Pinto, Monteiro made clear that this will only be needed if the government decides not to go ahead with the sell-off.

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