“The days of proudly standing alone are over”, says TAP CEO. “In a year’s time, we will be part of a giant aviation group”

TAP CEO Luís Rodrigues said at the World Aviation Festival, an aviation fair taking place between 7 and 9 October at the Lisbon International Fair (FIL), that it is inevitable that the company will be integrated into an industry giant, a process that should be completed within a year.

“In a year’s time, we will be integrated into a giant aviation group”, he said, referring to the privatisation process of 49.9% of the airline. Asked about the loss of independence, he replied that “it is a natural process”. “The days of proudly standing alone are gone. There was a time when that was possible. Not anymore. If we are alone, it will be very hard”, he added.

He was also asked about the challenge of managing human resources in a context where the carrier is being sold. “What we tell our employees is to keep working, because we are not sure if privatisation will actually happen. I hope so”, he replied. “The worst thing that can happen is for someone to come along and say that these people are paralysed. Then they will say, ‘you can leave’. If they see that they are doing a good job, they will want people to stay.”

The CEO of the Portuguese carrier pointed to Brazil, Africa and the Maintenance and Engineering business as the main growth opportunities for the airline.

“Brazil has always been a promising country and still is. There are immense opportunities”, said Luís Rodrigues, pointing out that tourism still accounts for only 6% of the country’s economy, so there is plenty of room for growth.

The manager also said that the Brazilian market is recovering, in contrast to the US market, which is slowing down. TAP flies to 13 cities in the country and is the only European airline in nine of them. “Our geography and culture allow us to leverage South America and Africa”, he said.

The CEO of TAP said he was “moderately optimistic” about the evolution of the business over the next 12 to 15 months, but predicted low growth.

Luís Rodrigues also highlighted the potential that exists in maintenance and engineering. “We have room to grow. It’s a huge opportunity”, he said, noting that this area of activity helps to balance the business. “If things go wrong in the sector, there will be more planes on the ground and opportunities for maintenance”, he said.

At the opening of the conference, the Secretary of State for Infrastructure, Hugo Espírito Santo, stated that Portugal “needs a flag carrier” and that the privatisation of 49.9% is “fundamental to ensuring the resilience and future of the sector in Portugal”.

In July, the Government approved the decree-law privatising 49.9% of TAP, including 5% for employees. The specifications, approved in September, stipulate that bidders must be airlines with a minimum turnover of €5 billion in one of the last three years. Expressions of interest must be sent to Parpública by the 12th.