International Airlines Group (IAG), owner of British Airways and Iberia, is seeking full ownership of TAP Air Portugal, arguing that a minority stake could be problematic.
Last year, Portugal's government relaunched the privatisation process of the flag carrier by opening 44,9% of the company's capital to one or more investors and 5% to the employees. The Lufthansa Group, IAG and Air France-KLM all expressed interest in bidding for the stake.
According to Aerospace Global News, IAG wants the Portuguese government to leave an option open to increase the stake to about 100% if it wins, saying full ownership is the only way to meet margin targets and expand TAP.
It is not clear whether IAG will continue with the bid if it is unable to secure majority ownership.
The three airline groups are required to submit their offers by April 2, with a decision expected by the northern summer.
