IAG has withdrawn from the bidding process for a stake in TAP Air Portugal, leaving Lufthansa Group and Air France-KLM as the remaining contenders, according to Reuters.
The Portuguese authorities had invited the three airlines to bid for share of the airline. However, ahead of the April 2 deadline to submit interest for a 44.9% stake in the Portuguese carrier with 5% for employees, rumours had surfaced that IAG was unhappy with the terms.
In particular, it wanted a controlling stake in the airline and did not want to commit to bolstering the carrier’s operations and routes across all Portuguese airports including its main Lisbon hub. Air France-KLM and Lufthansa are understood to have submitted bids.
The Portuguese government is now reviewing the proposals from the remaining two bidders as it continues efforts to privatise the carrier.