The Portuguese government has formally set the valuation for the partial privatization of TAP Air Portugal (TP), placing a $817.7 million price on a 44.9% minority stake in the national carrier. In addition, 5% of the airline’s shares will be reserved for employees, while the state will retain majority ownership to safeguard strategic control.
Azores Airlines, the regional flag carrier of Portugal’s Azores archipelago, may be forced to declare insolvency if its ongoing privatization process does not succeed, according to Duarte Freitas, a senior official from the Regional Government of the Azores. The financial exposure in such a case could exceed US$350 million, placing substantial pressure on regional and national stakeholders.
Aerolíneas Argentinas, the national airline of Argentina, is now officially on the path toward privatization, following a public statement from Manuel Adorni, spokesperson for the Argentine presidency. Adorni described the process as “unavoidable”, framing it as part of a broader government initiative to reform and streamline state-owned enterprises.
Air Europa, the Spanish carrier currently undergoing a privatization and acquisition process, is facing increased uncertainty in its sale as the airline evaluates underwhelming offers from major European airline groups. Bids submitted by both Lufthansa (Germany) and Air France-KLM are reportedly below expectations, casting doubt over the timing and structure of a potential transaction.
Lulutai Airlines (Tonga) has officially submitted a request for a government subsidy aimed at accelerating its financial recovery efforts before a potential privatization. The move comes as the airline attempts to stabilize operations and repay existing liabilities, positioning itself as a more viable candidate for a private investor.
SriLankan Airlines will no longer undergo privatization, according to a decision by the Sri Lankan government to retain national ownership of the carrier. The move reverses earlier intentions to offload the state-run airline and instead pivots toward internal reform through a new management structure designed to drive profitability.
TAP Air Portugal, the flag carrier of Portugal, may see its planned privatization process delayed until summer 2025 or potentially later. This news comes from Luis Gallego, CEO of International Airlines Group (IAG), who mentioned that the timing could shift depending on the priorities and plans of Portugal’s new government.
The Pakistan government has announced that it will expedite the privatization process of Pakistan International Airlines (PIA), with an expected completion date of June 2025. This move is part of a broader strategy to restructure and enhance the financial stability of the national carrier ahead of its sale.
Qazaq Air, a regional airline based in Kazakhstan, has announced the arrival of new ownership following the sale of a 51% stake by the national welfare fund Samruk-Kazyna. The new majority stakeholders include Sovico Group from Vietnam and Kazasia Holdings from Kazakhstan. This pivotal move marks a significant milestone in the airline’s growth and expansion strategy.
Pakistan International Airlines (PIA), the national flag carrier, is poised for privatization, marking a major step in its restructuring. The government has announced plans to remove the airline’s existing liabilities, making it more attractive to potential investors.
