On Friday, 27th, Portugal’s President, Marcelo Rebelo de Sousa, temporarily altered the trajectory of national airline TAP, citing concerns over transparency and the government’s role in the privatization process.
Defending National Interest
Highlighting that the taxpayers rescued TAP and that it holds strategic importance for the country, Rebelo de Sousa calls for utmost transparency throughout the procedure. A month ago, the government greenlighted the sale of at least 51% of the airline, focusing on finding a partner to spur the growth of both TAP and Portuguese airports.
Major airline corporations, including Lufthansa, Air France-KLM, and IAG (owners of British Airways), have shown interest in the privatization of TAP. However, President Marcelo Rebelo de Sousa expressed that the decree initiating the process raised «numerous doubts», prompting him to send it back for further clarifications.
Government Response
In response to the president’s concerns, Prime Minister Antonio Costa ensured that the issues would be «duly considered». Rebelo de Sousa specifically questions the post-sale governmental intervention capability, as the decree lacks clarity on the government’s role in administrative decisions after the sale. Furthermore, the president criticized the decree for allowing TAP to sell or purchase assets even before a firm sale decision, lacking precision and criteria, thus jeopardizing the transparency of the process.
