TAP Air Portugal for sale

Paris: Lufthansa Group, KLM/Air France, and the International Airline Group, comprising British Airways, Iberia, and Aer Lingus, are the three major European airline owners competing to lead the market, also with their respective alliance structures.

It appears the International Airline Group with its One World alliance is eyeing to purchase Air Portugal, the national carrier in Portugal and an essential member of the Star Alliance dominated in Europe by the Lufthansa Group.

The International Airlines Group (IAG) is a multinational airline holding company, formed in January 2011. It’s a Spanish-registered company with shares trading on the London and Spanish stock exchanges. IAG owns several prominent airlines, including British Airways, Iberia, Vueling, Aer Lingus, and LEVEL. IAG is now based in the UK.

However, all major owner groups in Europe, including the Lufthansa Group, which has just purchased the Italian Carrier, Air France KLM, and the Turkish Airlines Group, seem to be eyeing a hold of the Portuguese Airline. Turkish Airlines is part of the Star Alliance.

The healthiest group currently seems to be IAG. Especially with Iberia in neighboring Spain, there is good synergy.

There is a shift in ownership with SAS moving to ITA from Lufthansa, and Lufthansa purchasing a 10% ownership in airBaltic earlier this year. When ITS attempted to purchase Air Europe, the EU anti-monopoly authorities did not approve the deal.

Portugal has a good market share between Europe and South America, particularly in Brazil. After VARIG, the Brazilian carrier left Star Alliance many years ago; this connection became even more critical.

IAG may be close to acquiring TAP due to its South American links, and with Iberia, IAG would almost control the Iberian Peninsula market in Spain and Portugal.

IAG owns Aer Lingus, British Airways, Iberia, and Vueling, and has a 20% stake in Air Europa, which is unable to purchase the remaining 80% due to EU issues.