Air France emerges as first known bidder for Tap Air’s stake: Air France-KLM has become the first known carrier to submit an expression of interest (EOI) to acquire as much as 44.9% of Portugal’s Tap Air, the French carrier’s CEO Ben Smith told Bloomberg.

Rules for prospective suitors: As per mandates by the Portuguese government, prospective bidders must have annual revenues of at least EUR 5 bn in any of the past three years. Air France has agreed to the government’s requirements to keep the carrier’s Lisbon headquarters, expand Tap Air’s network — especially to Portuguese-speaking nations — and preserve the Tap brand, Smith said.

The big three are interested: British Airways owner IAG is also looking to acquire a stake in Tap, aiming to expand its Lisbon hub, Reuters reported earlier this year. Lufthansa CEO Carsten Spohr met with Portuguese officials last year, indicating interest in buying a stake, which could amount to 19.9% of the company, Reuters reported at the time.

BACKGROUND- Dark clouds over Lisbon: Tap’s headquarters was raided by Portuguese authorities amid suspicions related to the government’s sale of a 61% stake in the carrier back in 2015, Bloomberg reported this week. Privatization efforts were later undone by a newly elected Socialist administration.

Dates to remember: The deadline for the first round is 22 November. Qualified bidders will then be invited in January to submit non-binding offers by around 1 April. Binding bids will fall due around three months later.

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