National flag carrier Turkish Airlines (THY) said on Monday that it has no current plans to invest in a foreign airline after a Portuguese newspaper reported that the carrier was interested in buying a controlling stake in Portugal's ailing flag carrier TAP.
Citing diplomatic sources, Portuguese newspaper Negocios reported Monday that Turkish Airlines was interested in a controlling stake in TAP and could invest up to 1.9 billion euros ($2.14 billion), but would only start negotiations after Portugal's snap general election to be held on Jan. 30.
"There are stories in certain national and international media outlets that Turkish Airlines will invest in a foreign airline company," the airline said in a statement. "However, the stories being published as of today do not reflect the truth. Our (company) does not have any initiative to invest in an international airline," it said.
When asked if the government had been approached by Turkish Airlines about a possible investment in state-owned TAP, a spokesperson for Portugal's Infrastructure Ministry said it was unaware of any interest. "The Infrastructure Ministry does not have any information in this regard," the spokesperson said. TAP declined to comment.
TAP said earlier this month that it expected the European Commission to approve its 3.2 billion euro restructuring plan by Christmas.
EU antitrust regulators have been examining since mid-July whether the plan, which involves around 2,000 job cuts and pay cuts of up to 25%, is proportionate and complies with state aid rules and whether it affects competition. TAP is 72.5% controlled by the Portuguese state.
Infrastructure Minister Pedro Nuno Santos has said TAP is unlikely to succeed alone and must be open to consolidation with other airlines.
TAP's CEO Christine Ourmieres-Widener had said the company could in the future be part of the consolidation of the airline industry in Europe, but that it was "not a priority for now."
