British Airways and Iberia owner IAG may be interested in acquiring Portugal’s state-owned airline TAP if conditions are right, its Chief Executive Luis Gallego said on Monday.
“The TAP operation may make sense from a strategic point of view because of the Brazilian market, they are complementary… but we have to look at the other conditions under which it is privatised,” Gallego said.
The Portuguese government has said it wants to sell TAP as early as July, once the company’s value is established, but intends to keep a strategic stake.
At least three major global carriers – IAG, Lufthansa , Air France-KLM – have so far shown an interest.
Sustainable aviation fuel has become the industry’s best hope to achieve its promise of net zero emissions by 2050. Aviation produces 2% to 3% of worldwide carbon emissions, but its share is expected to grow as travel increases and other industries become greener. Sustainable fuel, however, accounts for just 0.1% of all jet fuel. Made from sources like used cooking oil and plant waste, SAF can be blended with conventional jet fuel but costs much more.
Separately, Gallego said IAG was open to selling some Madrid slots to Irish airline Ryanair as part of potential remedies to its acquisition of Air Europa. IAG has agreed to buy the remaining 80% in Spanish carrier Air Europa it did not already own for 400 million euros ($435.96 million). The deal still needs antitrust clearance by the European Commission.
Ryanair said earlier this month it was keen to buy any Madrid slot the EU Commission would force IAG to sell.
