The Portuguese government has approved a plan to sell a 49.9% stake in TAP Air Portugal, marking the first phase of reprivatization of the country's largest wholly state-owned airline. The decision was announced by the Prime Minister during a Council of Ministers meeting. The state will retain majority ownership, with the completion of the privatization process expected within a year. This move aims to attract strategic investors amid increased competition and capitalize on TAP's strong connections to Brazil and the tourism boom. Major European airlines such as IAG, Air France-KLM, and Lufthansa are reportedly interested in acquiring the stake. The government also anticipates interest from investors in other regions. If the initial privatization partner does not meet valuation expectations, the state may consider bringing in a new investor or listing TAP on the stock exchange as part of a second phase of privatization.