Latest News

TAP, Portugal's Telecommunications company, sees a strong growth potential for Brazil and Africa

Portugal's soon-to-be-privatised airline TAP is well-positioned to tap into strong growth potential in Brazil and Africa, Chief Executive Luis Rodrigues said on Wednesday.

The airline offers flights to 14 African destinations, including Portuguese-speaking nations such as Angola or Mozambique.

He said, "We're fortunate to be able to take on both (Brazil & Africa)", at the World Aviation Festival held in Lisbon.

"Brazil's a promising nation, and there is still a lot of opportunity there," he said, pointing out that tourism only represents about 6% in Brazil, whereas it accounts for 16% in Portugal.

Rodrigues stated that "Africa is larger than Portugal", but that the countries in that continent still faced more structural challenges.

TAP's CEO said that TAP had "a good geographic balance" between North America and South America. Europe and Africa are also included. This allows flexibility, because "not every route looks good or bad all at once".

TAP also has good growth prospects in other non-passenger business areas, including maintenance and engineering.

Portugal has relaunched its long-delayed TAP privatisation in July. The aim is to sell a stake of 44.9% to an airline with global scale and competition, plus an additional 5% for TAP staff.

Rodrigues stated, "The days of being proudly by myself (TAP) are gone. It was once possible, but it's not any more and I would be happy to integrate into a bigger group."

The government is looking for a new partner to take over TAP’s daily management and strengthen its position as a global airline.

(source: Reuters)