TAP Terms of Sale brochure sets out 11 criteria

The Terms of Sale to guide aviation investors in the 49.9% sale of Portugal’s national carrier TAP have been made public.

The brochure has 11 terms that any airline group bidding for the non-controlling share will have to demonstrate a commitment to if they want to be in the bidding.

All told, the 11 criteria that range from price to a strategic and industrial plan and respect for Portugal’s labour laws, are accepted by two of the large airline company groups.

The Terms of Sale allows for “eventual alternative forms of price payment, such as an exchange of shares”.

The 11 terms are: 1) The potential buyer must have experience in the sector. 2) It must be financially sustainable. 3) It must have an ambitious industrial plan. 4) It must safeguard the brand, the Lisbon hub and routes. 5) It must recognise the obligations of being a public service. 6) Legal guarantees. 7) Assumption of regulatory risks. 8) Respect for labour commitments. 9) A future further privatization phase. 10) Maintenance and sustainable fuels. 11) The price offered by the airline groups for TAP’s shares.

The AIG Group, which owns British Airways and Iberia, has already shown satisfaction with the publication of the Terms and Conditions and is “carefully studying the details” and has indicated that it will “modernise the TAP fleet and strengthen the Lisbon hub”.

IAG and Lufthansa are studying the details in the Terms of Sale while Air France has shown an interest in buying the 49.9% share in TAP.

Source: ECO; Image: TAP