Portugal’s TAP Draws Three Major Bidders as Swiss Inflation Anticipates Slight Acceleration

By / / Breaking News

Key Takeaways

  • Portugal's state-owned airline TAP has received three formal expressions of interest from major European carriers – IAG, Air France-KLM, and Lufthansa – for a minority stake as part of its privatization efforts.
  • The Portuguese government aims to sell a 44.9% stake to a strategic airline partner, along with an additional 5% to employees, while retaining a controlling 50.1%.
  • Swiss National Bank President Martin Schlegel anticipates a slight acceleration in consumer-price growth in Switzerland in the coming quarters, though inflation remains within the central bank's target range of 0-2%.

Portugal's state-owned airline, TAP, has attracted significant attention from leading European carriers, with three formal expressions of interest submitted for a minority stake in the company. Meanwhile, in Switzerland, the central bank foresees a modest uptick in consumer-price growth.

TAP Privatization Heats Up with Major Airline Interest

Portugal has officially received three expressions of interest from potential investors seeking a minority stake in its national carrier, TAP. British Airways-owner International Consolidated Airlines Group S.A. (IAG), Air France-KLM S.A. (AF), and Deutsche Lufthansa AG (LHA) have all formally indicated their interest in the part-privatization of TAP. This development follows the government's relaunch of the long-delayed privatization process in July.

The Portuguese government intends to sell a 44.9% stake to a strategic airline partner, with an additional 5% to be offered to TAP employees. This structure ensures the government will retain a controlling 50.1% stake in the airline. TAP's attractive assets include its crucial connections to Brazil, Portuguese-speaking African countries, and the United States from its Lisbon hub, which the government aims to preserve and expand.

IAG confirmed its submission but noted that "several terms would need to be addressed" before it could propose an investment. Lufthansa, for its part, emphasized TAP's "great strategic importance to the European aviation industry" in its proposal. The government's objective is to secure a partner capable of boosting TAP's global scale and competitiveness, while also preserving Lisbon's role as an international hub and the airline's brand identity.

Swiss Inflation Expected to Accelerate Slightly

Swiss National Bank (SNB) President Martin Schlegel has indicated that consumer-price growth in Switzerland is expected to accelerate "a bit" in the coming quarters. Speaking in Zurich, Schlegel noted that current inflation is at the lower end of the SNB's price stability range of 0% to 2%.

The central bank's forecasts project inflation to average just 0.2% in 2025, before rising to 0.5% in 2026 and 0.7% in 2027. The SNB has maintained an expansionary monetary policy, having cut interest rates to zero to support inflation. However, Schlegel reiterated that returning to negative interest rates, a policy previously in place from 2015-2022, faces a high bar.

Schlegel also highlighted that uncertainty remains high, citing potential downside risks from announced, though currently suspended, U.S. tariffs on certain pharmaceutical products. Analysts widely anticipate the SNB to keep interest rates unchanged at 0% following its next decision in December.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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