British Airways (IAG) parent IAG said its interest in purchasing Portuguese carrier TAP SGPS SA has cooled after the addition of U.K.-based BMI brought sufficient airport slots to improve connectivity with Latin America.
“Our interest in TAP has waned,” Chief Executive Officer Willie Walsh said today in an interview in Brussels. While IAG, or International Consolidated Airlines Group SA, remains interested in acquisitions, there are none that appear suitable right now, he said.
TAP is likely to become available for purchase this year as Portugal seeks to raise funds under the terms of a 78 billion- euro ($98 billion) bailout from the European Union and the International Monetary Fund. Walsh had said previously that the Lisbon-based company was high on his list of takeover targets.
TAP would bring IAG lucrative Brazilian routes should the London-based company’s Oneworld partner, Lan Airlines SA (LAN) of Chile, quit the alliance following a merger with Sao Paulo-based Tam SA (TAMM4), a member of the rival Star grouping.
Walsh said today that BMI’s takeoff and landing slots at crowded London Heathrow airport are in any case sufficient to add capacity to South America, making TAP less of a prospect.
IAG