Crisis could delay reprivatisation by 6-12 months
Air France-KLM said today that it remains interested in privatising TAP even if it is postponed due to the political crisis in Portugal. However, the group’s CEO has asked for definition and stability as soon as possible.
“The fact that there could be a delay of six or 12 months doesn’t seem material to me, but we would like to have visibility (definition of the process) as soon as possible,” said Ben Smith at the press conference as part of the presentation of the groupâs 2024 results.
The CEO also said that the group is monitoring the situation in Portugal and hopes for’ stability” so that they can move forward with the process.
It became clear yesterday that the country could be on track for a snap legislative election in May – even though no one, truthfully, can see the sense in it.
Ben Smith has also acknowledged that his group is interested in buying the 20% stake in Air Europa held by IAG, owner of Iberia and another of the potentially interested parties in TAP.
“There are three or four airlines that are still independent, in other words they are not part of the three big European groups,” Smith told the press conference, referring to TAP, Air Europa and Finland’s Finnair.
“Air Europa is an interesting family airline. It has a different network to TAP and doesn’t focus so much on Brazil,” he said, adding, “I can’t say which airline we prefer.”
When asked why Air France-KLM is the best candidate to buy TAP compared to Lufthansa and IAG, Smith cited the groupâs relations with the governments of France and the Netherlands: “Of the three groups in Europe, we are the only one that has worked successfully with two governments.”
Air France-KLM’s largest shareholder is the French state, with 27.9%, followed by the Netherlands, with 9.13%. The structure also includes France’s CMA CGM, with 8.8%, China Eastern Airlines, with 4.58%, and US company Delta, with 2.8%.
“We have two governments in our shareholder structure and the relationship works well. Our strategies are aligned, and I think they are attractive to the Portuguese government. I can’t speak for them, but I think that makes us more attractive because we have 20 years” experience,” Smith added.
Last week, on a visit to Portugal in an entourage that included the Air France-KLM CEO, French President Emmanuel Macron defended an “innovative form of marriage” between Air France and TAP. Smith, too, used the occasion to say his group is ready to present its project for the privatisation of TAP, maintaining the brand and the hub – conditions already imposed by Portugal’s government.
But there was no talk today of the statement made by Portuguese union SNPVAC, representing civil aviation flight personnel, stressing that privatisation talks must include them, or will be doomed to (another) failure in this long-drawn out process. And since it was mooted some months ago, there has equally been no talk of the ‘Portuguese plan’ to keep TAP in national control. ND
Source material: Lusa
