Portugal’s recent change of government after its March elections has left a number of issues from the previous regime, including the fate of TAP and the location of a new Lisbon airport hanging, even as they had appeared to be moving toward quick solutions only months ago.
Under former Prime Minister Antonio Costa, the government was preparing a bidding process to sell off all but a small share of TAP Portugal, the flag carrier that was renationalized after pandemic-era financial problems. The new premier, Luis Montenegro, has not backed off from the plan, but has given no indication of when it will begin moving forward again.
Bids are expected from Lufthansa Group, IAG and AirFrance/KLM, the three major European airline holding groups. AF/KLM indicated last week that it is still interested, even if only a minority interest is made available. Meanwhile, TAP has returned to profitability, turning in its best-ever net, €177.3 million on gross revenue of €4 billion.
The airport location question has been going on for over a decade, with no final decision on how to replace or augment Lisbon’s Humberto Delgado airport, which is conveniently located but unable to expand further.
At one point, it appeared that an easy solution was a former airbase at Montijo, across the river from Lisbon, but a technical commission last year examined a dozen or more other sites and recommended one at Alcochete, also across the river. It is said to be favored by the new government, but there is still no decision, leading to some cynicism over whether it will ever happen.
