Privatisation Flies Forward with TAP

Privatisation Flies Forward with TAP

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Already testing the water with two giant utility companies, Portugal is powering ahead with sell-off of government-owned TAP in an effort to stabilize the country's debt load. TAP is an airline that benefits over 9 billion travelers each year throughout Latin America, and with Brazil being a major destination stop.

Those interested in bidding will soon have a chance to scrutinize the details of the sale that are part of a government bailout. The most prominent banks in Europe are assisting with the preparation of financials in order to achieve a realistic net worth.

Large, noteworthy airlines, such as International Airlines Group (IAG) and Lufthansa of Germany, are already showing an interest in the company even before knowing the terms, conditions or price. According to the government, there could be more than one owner considered as a public offering of shares will be made available.

The ANA (Airports of Portugal) is scheduled to be sold by the end of this year end and the complete package of TAP will be made available sometime after. The state hopes to recover a hefty 1.5 billion Euros with the two entities combined. This amount would barely cover Portugal's substantial debt and leaving little to work with. However, there are no unreasonable expectations that 1.2 billion Euros will probably be closer to the ending price tag.

TAP, or Transportes Aereos Portugueses, has been a historical part of this nation since 1945. By 1958, there were over 1,000 employees that made up the airline with dozens of destinations under its belt. 1969 introduced regular scheduled flights to New York City, a major milestone for TAP.

By this time, TAP had a prestigious fleet of Airbus A-300s, Lockheed TriStars, McDonnell Douglas DC-10s and and Boeing 747s. The airline is a mark of pride, as seen by residents, receiving several awards for outstanding service and the use of modern technology for safety.

Throughout the 6 1/2 decades of TAP competing to be part of the international world, the pride instilled upon its government with philanthropy-type programs has made the airline a well-recognized name among the big players. A supporter of the Green Wave Initiative Program of the United Nations, every effort is made to reduce carbon dioxide emissions not only in the cab but also in the air.

Further, TAP sponsors promotions that educate the young, praise university students and offers Islamic meals in accordance with their religious principles. Many other unique campaigns are always in full force that offer discounts and create a mutual interest with other countries.

The branded symbols of TAP are inclined to be kept as part of the reputation that has been built and it has been decided that these rights will travel along with the sale. There has been no definite time line in respect to the actual crossover but everything is falling into place.

Hopefully, the hard work and commitment that has been made by TAP will be continued, a fresh start can spring into play, and the Portuguese will once again discover prosperity with flying colors.


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Published in: News and Updates / Travel