Experts point out flaws in the 2015 privatization of TAP and warn against repeating mistakes

The privatization of TAP in 2015 was a controversial milestone that, almost a decade later, continues to be the target of criticism from experts who point out structural errors and negative impacts for the company and the country.

The privatization of TAP in 2015 was a controversial milestone that, almost a decade later, continues to be the target of criticism from experts who point out structural errors and negative impacts for the company and the country.

Led by the outgoing Passos Coelho administration, the 2015 sale of TAP occurred amid budgetary pressure and a lack of political consensus. The Atlantic Gateway consortium, led by David Neeleman and Humberto Pedrosa, acquired 61% of the company, leaving the state with 34%.

Shortly thereafter, with António Costa in government, the business structure was changed and public participation strengthened. In 2020, with the impact of the pandemic, the State regained control of TAP, nationalizing the company and injecting €3.2 billion in financial support.

Experts interviewed by Lusa believe that the 2015 process was marked by strategic errors. "It was a rushed privatization, without broad public debate and without effective safeguards," said Maria Baltazar, a professor at ISEC Lisboa.

For former Iberia and PGA manager Rui Quadros, the problem wasn't privatization, but how it was done. "There was a lack of strategy, long-term vision, and, above all, institutional stability," he stated, noting that the government that moved forward with the sale was already nearing the end of its term and lacked political consensus, which weakened the entire process.

"It was a privatization carried out under fragile conditions, with little protection and no safeguards against future reversals. And this cost TAP and the country dearly," added the professor specializing in aeronautics.

From an operational standpoint, Rui Quadros recognizes progress made with the operation carried out in 2015. The fleet was partially renewed and TAP reinforced its routes to Brazil and the USA.

There was also some effort to improve service and brand image. However, he emphasizes, "criticism arose regarding internal management and labor decisions that were later deemed illegal."

And looking at the reprivatization model presented this week by the executive, the official highlights that the Government "seems to have learned from these mistakes, by structuring a more phased privatization, with criteria of national strategic interest and explicit contractual safeguards in the specifications, but with many political messages", he pointed out.

Maria Baltazar believes that the entry of the Atlantic Gateway consortium in 2015 brought important changes, such as the ordering of new Airbuses and the strengthening of the Atlantic presence. "In terms of service, visible improvements were implemented in an effort to reposition the brand," notes the aeronautics specialist.

But, like Rui Quadros, she points out structural flaws in the business's political design. For Maria Baltazar, the state lost strategic control without guaranteeing special intervention rights, and the private sector's business plan was "too optimistic."

SkyExpert founder Pedro Castro is more blunt: "The way the Portuguese state behaved institutionally toward the private sector was, to say the least, shameful." For the analyst, the central error was haste. "I believe it was an electoral rush, associated with the Troika's current situation," he argues.

The official also criticizes the lack of a long-term vision: "TAP's sole shareholder doesn't have a strategy for TAP. It's the State itself, represented by governments that use the company as an electoral banner."

Pedro Castro also highlights that, in a sector that requires constant investment, privatization unlocked financial capacity that the State, due to European rules, could not guarantee.

Still, it regrets that the process was conducted without time to ensure shareholder stability and clear regulation.

All the experts consulted converge on one conclusion: the first privatization of TAP failed due to a lack of strategy, political dialogue, and guarantees of continuity, and the mistakes of 2015 cannot be repeated in a new process that aims to be more transparent, robust, and aligned with the national interest.

This week, the Government kicked off the sale of the airline with the approval of the corresponding decree-law by the Council of Ministers, which still needs to be promulgated by the President of the Republic.