Portugal is to sell its controlling stake in state airline TAP to a consortium led by American-Brazilian investor David Neeleman.
The Portuguese government picked a €348m bid from Neeleman and Portuguese bus company owner Humberto Pedrosa – Neeleman is the founder of US airline Jet Blue and the CEO of Azul Brazilian airlines.
According to Reuters the government is selling a 61 per cent controlling stake in TAP but will retain 34 per cent which it can sell in two years. Staff will be entitled to the remaining 5 per cent.
"We can't go against history," Prime Minister Pedro Passos Coelho told journalists shortly after the government confirmed the sale.
"We know what happened to most European flag carriers in recent years...if this process didn't take place it would have meant the liquidation of TAP in the medium-term."
The consortium has agreed to maintain Portugal as the airline’s main hub for a minimum of 30 years.
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