On August 7, 2025, the President of Portugal, Marcelo Rebelo de Sousa, officially promulgated a decree for the reprivatization of TAP Air Portugal after receiving necessary clarifications from the government.

This approval allows the continuation of the sale process for TAP, despite previous reservations regarding the transparency of the privatization.

Concerns surrounding the privatization include issues related to TAP's assets, potential changes to its capital structure, and the recent insolvency declaration of the former TAP SGPS.

The government plans to sell up to 49.9% of TAP's capital in this initial phase, with 5% reserved for the airline's employees as mandated by privatization laws.

Following the promulgation, a 60-day pre-qualification phase for interested buyers will commence, allowing them to prepare for the bidding process.

The government estimates that all four stages of the privatization operation will be completed within a year, subject to regulatory approvals.

Several European airline groups, including Lufthansa, Air France-KLM, and International Airlines Group (IAG), have expressed interest in acquiring a stake in TAP, although their commitment hinges on the sale conditions.

IAG's CEO, Luis Gallego, has indicated a cautious approach, emphasizing the need to review the terms before making any decisions regarding the acquisition.

Air France-KLM's CEO, Benjamin Smith, noted the importance of assessing the financial viability of the acquisition and potential regulatory hurdles from the European Commission.

The formal initiation of the reprivatization process began on July 10, 2025, with a decree-law outlining the operation's terms.

The decree-law was initially approved by the Council of Ministers on September 28, 2023, but was returned by the President for further review before its recent promulgation.

Unlike the previous attempt to privatize TAP in 2023, which faced a presidential veto due to transparency concerns, the President has ruled out any such veto this time.