Portuguese gov't defines new criteria for TAP airline sale

The Portuguese government announced new criteria on Tuesday for the sale of the state-owned flagship airline carrier, TAP.

The government has defined nine conditions for the sale, published in Diario da Republica, including elbowroom, to reinforce TAP's financial capacity and the price offered for the company.

Portugal relaunched the concession in November last year, after the first attempt was stalled at the end of 2012 because Brazilian investor German Efromovich, owner of Avianca airline brands in South America, didn't meet the necessary banking requirements on time.

Other conditions include the buyer's strategic orientation, performing public service, and contributing to economic growth.

TAP's privatization is one of the terms set in the 78-billion-euro (about 91 billion U.S. dollars) bailout program Portugal signed in May 2011 with the troika of international lenders, namely the European Commission, the International Monetary Fund and the European Central Bank.

Portugal decided to sell off 66 percent of TAP, and the government will retain a 34-percent stake in the airline, which it can sell two years after the sale.

On Monday, TAP employees demanded access to the terms of the company's sale, following successive strikes, which have cost the airline millions of euros.

Last week, TAP announced it was imposing a ban on firing employees en masse as long as the state is a shareholder of the company. Endite