IAG group may be interested in TAP privatisation depending on terms
The executive plans to approve by July the decree-law that will start the privatisation of TAP, followed by the approval of a resolution in the Cabinet that will define the terms of the process.
The aviation group IAG considers that TAP may be an opportunity to access the Brazilian market and some African countries, depending on the conditions for its privatisation, the chief executive, Luis Gallego said on Monday.
According to EFE, at the presentation of the first study on the economic impact of IAG in Spain in Madrid, Gallego said that from a strategic point of view it may make sense for the group – which includes British Airways (BA), Iberia, Vueling, Aer Lingus and Level – to access the Brazilian market and some African countries where TAP operates, markets where IAG does not have a presence and which may be complementary to its current network of destinations.
However, he noted that it would have to be analysed “under what conditions [TAP] is privatised and if it makes sense for IAG, because there are also other solutions for entering the Brazilian market other than acquiring a company”.
The Council of Ministers approved on 27 April the resolution that mandates Parpública (the state asset management company) to hire independent evaluations needed for the privatisation of TAP.
The executive plans to approve by July the decree-law that will start the privatisation of TAP, followed by the approval of a resolution in the Cabinet that will define the terms of the process and the specifications.
As for the purchase of Air Europa, pending approval by the European competition authorities, the chief executive of IAG explained that the group is talking to the European Commission and knows that there are certain routes where it will have to offer remedies (concessions) if the operation goes ahead.
“We are starting talks with Brussels and of course we can take a proactive approach, but we will also listen to what they tell us,” Luis Gallego added.
