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TAP Air Portugal to expand in U.S., Brazil after privatization

Xinhua, June 24, 2015 Adjust font size:

American-Brazilian investor David Neeleman, the new owner of TAP Air Portugal, wants to expand the airline's operations in the United States and Brazil, he revealed at the official signing ceremony on Wednesday at the ministry of finance in Lisbon.

Gateway, a consortium led by Neeleman and Humberto Pedrosa, owner of the Barraqueiro transport group, was picked to buy a 61 percent stake in airline TAP Air Portugal earlier this month as part of the Portuguese government's privatization plan.

Neeleman said the consortium intended to expand operations to 10 more destinations in the United States and 10 destinations in Brazil, promising to do everything in his hands to strengthen the company's capital base, buy more planes and take care of employees.

Pedrosa, who also signed the contract, said it was a "very important day" for Portugal since it meant a commitment to increase growth, adding that they intended to make the company the "best in Europe."

He said Lisbon continuing to be the headquarters for TAP was a decisive factor in his decision to participate in the project.

TAP's sale was part of an agreement the government made in 2011 when it signed a bailout with the European Central Bank, International Monetary Fund and European Commission.

The sale means revenue amounting to 10 million euros (11.2 million U.S. dollars) for the Portuguese state as well as an investment of 354 million euros to capitalize TAP. Endit