The planned privatisation of TAP Air Portugal (TP, Lisbon) has not yet been approved by the country’s council of ministers but interested would-be buyers are jostling for position, with IAG International Airlines Group already selecting legal and communications advisors ahead of the race to buy a stake in the flag carrier, the Portuguese-language site ECONews reported.

The British Airways, Iberia, Vueling Airlines, and Aer Lingus parent, which also pledged two months ago to buy the remaining 80% of Spain's Air Europa (UX, Palma de Mallorca), has reportedly chosen communications agency Cunha Vaz & Associados and law firm Vieira de Almeida.

Air France-KLM and Lufthansa are also seen as potential buyers. An anonymous source told the news agency Reuters this week that both were also talking to possible legal and communications advisers in Portugal, and a communications agency source said there were ongoing talks between the main agencies and the three airlines.

During a presentation of its 2022 results in early March, the German company said it saw the most interesting targets for mergers and acquisitions in Europe as being ITA Airways (AZ, Rome Fiumicino), for which it is in talks with the Italian government for the acquisition of 40%, and TAP. In February, the chief executive of the Franco-Dutch group, Ben Smith, praised the Portuguese company, saying during a news conference: “We find [TAP’s] network into Brazil extremely powerful for us.”

These comments came amid media reports that the Portuguese government had begun discreet discussions with all three groups, but the companies have declined to say anything further on the issue.

It is the connections to South America, in particular to Brazil, that are considered to be the main attraction of the Portuguese airline, and TAP also plays an important role in routes to Africa. However, of the three candidates, IAG raises the most doubts due to worries that the proximity of Iberia hub Madrid Barajas could harm TAP’s hub in Lisbon. Economy Minister António Costa Silva recently told the parliament: “I particularly think that Iberia is not a good solution.”

Fully state-owned TAP is currently restructuring under a European Commission-approved EUR3.2 billion euro (USD3.54 billion) rescue plan. The government is working towards the privatisation of the airline, which could either be an outright or partial sale. A number of controversies have reportedly slowed the process, however, most recently with the government firing TAP CEO Christine Ourmières-Widener and Chairman Manuel Beja following a severance payment scandal. Luis Rodrigues, current president of SATA Air Acores (SP, Ponta Delgada), took over as chief executive and chairman on April 14.