British Airways is planning to bid for the Portuguese flag carrier TAP, which has been put up for sale, according to reports.

Lisbon has been forced to privatise TAP, following Lisbon’s £69 billion bail out by the European Union and International Monetary Fund. Tap made a loss of 3.5m euros last year.

BA recently merged with Iberia to create Spain’s International Airlines Group (IAG), which is led by Willie Walsh. Informal talks have been held by IAG and TAP, and an auction of the Portuguese airline is expected to kick off this summer.