Future shareholders in the Portuguese airline company TAP will not be able to sell their position for a period of five years, is one of the details in the privatisation process published in the official government gazette on Friday.

The sale takes place over two phases with TAP first subject to direct sale before a maximum of 5% of shares are made available to company employees with the five year ban applied in both cases while extendable to a decade in the former depending on the terms of the direct sale.

The terms for deciding the winning bid are defined as “technical and management experience in the aviation sector, reputation and financial capacity” in conjunction with the price on the table.

In particular, the decree-law stipulates that no investor may take up a majority stake with a 49.9% cap designed to prevent the company’s acquisition by a non-European firm.

This remains in keeping with the Council of Minister’s August statement approving the operation that emphasised the importance of TAP, which flies to 77 destinations in 35 countries, as the national “flag carrier” and hence “a company with a strong connection to the country that was of importance to retaining.”

However, there is no specific date set for completion of the privatisation process even while Minister of Finance Vítor Gaspar has said the operation is to be finalised by the end of this year.

Lufthansa and IAG, the holding company owning British Airways and Iberia, are among those who have already ruled themselves out of the running with reports that Brazilian carriers TAM and Gol are however interested.

Barclays Capital, Banco Espírito Santo de Investimento, Citi Bank and Crédit Suisse are the financial advisers to the privatisation process of both TAP and ANA, the Portuguese airport operator.