The Portuguese government has appointed advisers to sell off large parts of the country's aviation industry, the Financial Times has reported.
Barclays Capital, Banco Espirito Santo, Citi and Credit Suisse will advise the government on the privatisation of the national flag carrier TAP and the operator of Lisbon Airport ANA.
The report says that both IPOs are set to go ahead this year but suggests there could be pressure to privatise the airline first because its hub operations at Lisbon Airport would have a huge affect on ANA's main asset.
Bidders for TAP could include IAG and Lufthansa who have both expressed an interest because of the carrier's services to the fast-growing Brazilian market.
However IAG chief executive Willie Walsh said that the group's interest in TAP was lessening although they had not ruled out making a bid.
Bidders for the airport company could include Global Infrastructure Partners, the investment fund that owns London's Gatwick and City airports.
Ferrovial, the Spanish infrastructure group which owns BAA, operator of London Heathrow and other UK airports may also bid for ANA.
Fraport, which operators Frankfurt Airport, and Aeroports de Paris, operator of Paris Charles de Gaulle are also interested.