Portugal said Thursday it is increasing its stake in its flag carrier airline, TAP Air Portugal, from 50% to 72.5% after negotiations with the company’s private shareholders.
“The state will now play a key role in TAP”, finance minister Joao Leao said. Transport minister Pedro Nuno Santos earlier said that the airline brings about half of the tourists who arrive by air: “It would be a disaster if we lost TAP”, he said.
The airline was privatised in 2015 following a national financial crisis. In 2016 however, the government negotiated a 50% public stake in the company. The consortium of private investors kept 45% and the airline’s staff were sold 5% of the company.
TAP has around 10,000 employees. It reported a loss of €395 million in the first quarter, but also had reported losses in the previous two years. The EU Commission recently granted Portugal a permission to inject €1.2 billion into the airline.
