JetBlue’s Founder and the Rebirth of a Portuguese Icon: How David Neeleman Envisioned TAP as Europe’s Next Great Gateway
In 2015, aviation entrepreneur David Neeleman, already famous for founding JetBlue and Brazil’s Azul Airlines, set his sights on a new challenge—reviving Portugal’s flag carrier, TAP Air Portugal. The airline, rich with history but mired in debt and inefficiency, was seen by many as an aging relic. But to Neeleman, it was a diamond in the rough.
This article delves into how Neeleman attempted to transform the 73-year-old airline into Europe’s next transatlantic powerhouse, the subsequent nationalization of TAP, and the airline’s evolving future as it eyes re-privatization and regional dominance.
—
A Strategic Acquisition: TAP in Neeleman’s Sights
In June 2015, the Portuguese government agreed to sell a 61% stake in TAP to a consortium known as Atlantic Gateway, led by David Neeleman and Humberto Pedrosa. For Neeleman, it was a golden opportunity to apply his trademark low-cost, customer-focused strategy to a legacy airline located at the edge of Europe—but right in the middle of key transatlantic routes.
Portugal’s unique geography meant it was a natural stopover between Europe and the Americas. Lisbon, in particular, held promise as a future global hub. Neeleman’s plan was clear: inject capital, modernize the fleet, restructure management, and market TAP as the ideal airline for travelers connecting between continents.
—
Fleet Overhaul and Route Innovation
One of the first priorities under Neeleman’s vision was modernizing TAP’s aging fleet. The airline placed a major order for 71 Airbus NEO aircraft, including A320neos and A330neos, making TAP one of the first global carriers to fly the new-generation A330neo.
This aircraft was a game-changer for the airline. More fuel-efficient and capable of flying longer distances at lower cost, it allowed TAP to expand its long-haul operations into North and South America with higher profitability.
But modernization didn’t stop at hardware. TAP introduced sleek, revamped interiors, improved inflight entertainment, and began reshaping its image with younger travelers in mind. Additionally, the “Portugal Stopover” program offered passengers the chance to spend up to five days in Lisbon or Porto without additional airfare when traveling on transatlantic itineraries. It was a clever play—generating tourist traffic and positioning Portugal as a destination, not just a layover.
—
Operational Headwinds and Government Intervention
Despite these innovations, challenges persisted. TAP was carrying a large debt load and struggling with high labor costs, which complicated restructuring efforts. By 2020, the COVID-19 pandemic delivered a brutal blow to the entire aviation industry. TAP was forced to ground much of its fleet, suspend routes, and accept government assistance to stay afloat.
In June 2020, the Portuguese government stepped back in, acquiring an additional 22.5% stake and taking majority control of the airline (72.5% total). As part of the bailout terms, David Neeleman agreed to sell his stake and exit the consortium. Though he had only been at the helm for five years, Neeleman had already laid the groundwork for a transformed TAP.
Despite his departure, many of his reforms—especially those involving the fleet, branding, and international expansion—remained integral to TAP’s new identity.
—
A Post-Neeleman Era: Rebuilding, Refinancing, and Regrowth
With the government now in charge, TAP focused on stabilizing operations and implementing a restructuring plan approved by the European Commission. It included cutting costs, reducing staff, and shrinking some less-profitable routes.
Yet by 2023, there were signs of recovery. TAP reported a record profit of €177.3 million that year, helped by a return in passenger demand and a leaner cost structure. The airline carried over 16 million passengers in 2024—a modest increase over 2023 but a far cry from pandemic-era lows.
Fleet modernization continued, and TAP’s long-haul aircraft maintained an average age of less than four years—among the youngest in the industry. Operational efficiency improved with the adoption of NAVBLUE’s Electronic Flight Bag (EFB), which reduced pilot workload and streamlined procedures.
—
Strengthening Brazil and the Americas
TAP’s network strategy, another holdover from Neeleman’s tenure, focused heavily on Portuguese-speaking countries, especially Brazil. By 2024, TAP served 13 destinations across Brazil, more than any other European airline.
This deep South American connectivity paid off. In 2024 alone, TAP transported over two million passengers between Brazil and Europe. New destinations such as Florianópolis and Manaus were introduced to capture additional demand. With the large Brazilian diaspora in Portugal and business ties between the two countries strengthening, TAP’s leadership in this corridor became a critical pillar of its business.
TAP also expanded service to North America, focusing on gateway cities like New York, Boston, Miami, and Toronto. Passenger traffic to the U.S. grew nearly 9% in 2024, affirming the airline’s bet on transatlantic growth.
—
A Secondary Hub in Porto and Expansion to the East
Traditionally, Lisbon had been TAP’s primary hub, but in a bold move, the airline began elevating Porto as a secondary base. In March 2025, TAP is launching a direct business-class-only route from Porto to Dubai, operated by its new Airbus A330neo aircraft.
The move is as symbolic as it is strategic. It signals TAP’s ambitions to compete with major Gulf carriers and expand beyond traditional Atlantic corridors into Asia via partnership with Emirates and others. It also helps decongest Lisbon and serve Portugal’s northern regions more directly.
—
Labor Relations and Legal Hurdles
In early 2025, a Portuguese court ruled that TAP owed retroactive salary increases to cabin crew following a dispute over pay suspensions imposed during the pandemic. The ruling could cost the airline up to €300 million, affecting 2,000 employees.
The announcement caused TAP’s 2024 profits to slump nearly 70%, casting a shadow over its otherwise positive financial recovery. Still, the airline retained strong liquidity with nearly €1 billion in cash and equivalents and a relatively low debt-to-EBITDA ratio of 2.3x.
CEO Luís Rodrigues emphasized the airline’s commitment to resolving labor issues while maintaining long-term sustainability.
—
Privatization on the Horizon Again
Now stabilized and positioned for growth, the Portuguese government is once again exploring privatization. But this time, it’s on its own terms.
Air France-KLM, Lufthansa, and IAG (owner of British Airways and Iberia) have all expressed interest in acquiring a stake. Analysts see IAG as the likely frontrunner due to geographic and strategic alignment, but political considerations could favor a bid from Air France-KLM, which has promised to keep TAP’s hub in Lisbon intact.
The government has yet to decide what portion of the company it will sell—estimates range from 51% to 80%—or whether it will retain a golden share to protect TAP’s autonomy and domestic routes. Nonetheless, a deal is expected in late 2025 or early 2026.
—
David Neeleman’s Enduring Legacy
Though no longer involved with TAP, David Neeleman’s fingerprints remain on nearly every aspect of the airline’s evolution. From modern aircraft and route strategies to the Portugal Stopover program and the emphasis on Brazil, many of his initiatives have become central to the airline’s identity.
His approach—focusing on customer experience, regional connectivity, and operational efficiency—helped reposition TAP from a legacy state-owned relic to a modern airline with global aspirations.
Whether or not TAP becomes the true “gateway to Europe” Neeleman envisioned, his five-year influence reshaped its trajectory and laid the foundation for its current renaissance.
—
Final Thoughts: TAP’s Place in the Sky
As TAP moves toward another privatization, it stands at a critical crossroads. The airline is no longer simply a Portuguese flag carrier—it is a connector between continents, a leader in Lusophone aviation, and a symbol of resilience and reinvention.
For Neeleman, it may be a closed chapter, but for TAP, the journey is just beginning.