From its modest beginnings to its current position as a major international carrier, TAP Air Portugal has undergone significant transformations that have solidified its place in the airline industry.

It’s the nature of the airline industry that airlines come and go. National flag carriers have always had an advantage over corporate. Both have fallen. Just a few of the names that come to mind are Pan Am, TWA, not government-funded but major players and household names. FlyBe, Thomas Cook, Air Italy, British Caledonian and British Midland, Lakers Airways Skytrain, Sabena, Swissair (the Swiss flag carrier), Monarch, big and small the list goes on. 26 famous airlines have gone out of business. TAP survived.


A long history

The founding of TAP Air Portugal was established in 1945, shortly after the end of World War II, with the aim of connecting Portugal to its overseas territories. The airline initially operated with a small fleet of propeller aircraft, serving a limited number of routes. However, as Portugal's colonial empire expanded, so did TAP's operations, leading to the airline's rapid growth in the early years. By the 1950s, TAP had established itself as a reliable carrier for passengers travelling to and from Portugal.

One of the key milestones in TAP Air Portugal's history was the introduction of jet aircraft to its fleet in the 1960s. This marked a significant shift in the airline's operations, allowing it to offer faster and more efficient services to its passengers. Additionally, TAP formed alliances and partnerships with other airlines, further expanding its reach and connectivity. The airline also focused on modernizing its services and facilities, introducing new technologies and amenities to enhance the passenger experience.


Politicians and unions have a strong voice

Government and unions have always had a big say in what happens to TAP. Both have understandable reasons, but this has complicated progress, to reinstate the obvious, TAP has survived. Brazilian-American airline tycoon David Neeleman became a major shareholder. Needless to say, not without eventual controversy from the government and unions.

The entrepreneur argued that his team’s plan had “saved TAP in 2015 and in the years that followed”. Neeleman spoke of the “political interference and unacceptable political pressure” over the airline he ran through the consortium Atlantic Gateway between 2015 and 2021.

The JetBlue entrepreneur founded five commercial airlines: Morris Air, WestJet, JetBlue Airways, Azul Brazilian Airlines, and Breeze Airways, and along with Humberto Pedrosa and Aigle Azur, owned 45% of TAP Air Portugal until his departure. Under more than a little controversy, he ordered 53 new Airbus aircraft. TAP still has a very modern fleet of the latest (and most economical) Airbus aircraft. In 2020, when TAP returned to state ownership, following the problems caused by the covid pandemic Neeleman was reported to have received a payout of 55 million Euros for giving up his shareholding.


Covid was a massive challenge

The covid pandemic was a serious problem for TAP, as it was for most airlines. Nobody handled it very well and thousands of airline passengers throughout Europe, and further afield, got very frustrated with their airlines who simply couldn’t handle the pandemic.

Over the past few months, the subject of privatising has been a major talking point again. The elections put a hold on conversations, but the new government seems still to favour privatisation. TAP's CEO, Luís Rodrigues argues that this should be partial, leading to a reprimand from the government. Once again politics and management are not, it seems, in total agreement. What the unions think is yet to be known, but they have a strong voice.


Who might buy into TAP?

One of the key factors influencing airline interest in acquiring TAP is the strategic location of its routes. TAP boasts a strong presence in Europe, Africa, and the Americas, with a focus on key markets such as Brazil and the United States. Airlines seeking to enhance their transatlantic operations or expand their reach in Europe would find TAP’s route network highly appealing. Additionally, TAP’s modern fleet and competitive market share further enhance its attractiveness as a potential acquisition target.

Names like Air France, KLM, Lufthansa, and the IAG group. (Aer Lingus, British Airways, Iberia, Vueling, and LEVEL). TAP is a member of the Star Alliance, along with 25 other airlines. Staying within the same airline group must be a major advantage. For my money that puts Lufthansa in a strong position, but politicians, management, and unions will all need to agree, so don’t hold your breath.

The reason TAP has survived and will continue to survive is that it is unique. TAP is not just a flag carrier for Portugal, it's more than that, it carries the hospitality and warmth of the Portuguese people. I remember stepping onto a TAP flight in New York, a city that is anything but calm, and it was like being back in Portugal. Warm and friendly cabin staff and a genuine welcome. They don’t always get it right, no airline does. But while so many airlines are only preoccupied with getting as many passengers as possible with the lowest possible service, TAP still stands out as an airline that tries to set higher standards.

Just like Portugal!

Image: 1947 TAP DC3. Photo: Ruth AS via Wikimedia Commons

Author

Resident in Portugal for 50 years, publishing and writing about Portugal since 1977. Privileged to have seen, firsthand, Portugal progress from a dictatorship (1974) into a stable democracy. 

Paul Luckman