The executive chairman (CEO) of Air France-KLM, Ben Smith, stated, during the presentation of the third quarter results, this Thursday, that the French-Dutch group remains interested in participating in the privatization of TAP, after analyzing the specifications. The group will submit an expression of interest in participating in the process this Novemberon the date set by the Government for this purpose, which ends on November 22nd.
“We are definitely interested. We intend to formally present the expression of interest in a position in the capital of TAP and this should happen by the end of the month”, stated Ben Smith, during the presentation of the third quarter results of the Air France/KLM group. A decision taken after analyzing the specifications for the privatization of a minority stake.
Along with expressing interest, candidates must prove that they meet the criteria required by the specifications, which include requirements such as being a company with at least 5 billion in revenue.
The Air France-KLM group announced its third quarter results this Thursday, marked by a 7% drop in profit, which reached 768 million euros. The accounts were penalized by the reduction in trips to the United States of America and the increase in expenses.
Ben Smith, without elaborating on statements about the privatization of the Portuguese company, asked about recent contacts with the Portuguese authorities, stated that there were none at this stage, stressing that this will only happen again at a later time. “We hope that [a manifestação de interesse] begin an official process, in which we will begin to meet with key stakeholders, including the Government”, he clarified.
The Ministry of Infrastructure, led by Miguel Pinto Luz, made it clear that at this stage it will not meet with candidates, only after the submission of formal proposals. After November 22nd, the Government should disclose the number of candidates for the privatization of TAP, but it is not yet certain that it will disclose who they are.
Ben Smith argued that it is still “too early” to say whether the privatization process is going well, noting that “in the next two months” it will be in a position to do so.
The commitment of the group led by Ben Smith in the TAP privatization process has been great, the manager believes that the offer of the two companies is complementary and that the purchase of the Portuguese company would make them number one in Latin America. In October, ECO reported, a delegation from Air France-KLM paid a visit to the Azores to assess the importance and strategic relevance of connections with the region. Air France-KLM is 28% owned by the French State and 9.1% by the Dutch State.
Profit falls 7% to €768 million
Ben Smith spoke during the question and answer period following the presentation of quarterly results. The drop in profit by 7% to 768 million euros is justified by the aforementioned decline in travel to the USA and the increase in expenses, but relatively weak performance in cargo transport and its low-cost airline, Transavia, during the summer season, which is generally the most profitable period for airlines.
Revenue grew 2.6% to €9.213 billion, while the operating margin remained practically unchanged at 13.1%. Air France-KLM, according to Lusa, citing information communicated by the group, attracted 4.7% more customers last summer, compared to the previous year, with 29.2 million passengers between the beginning of July and the end of September.