The privatisation of Portugal’s flag carrier TAP Air Portugal has entered its decisive stage after Lufthansa and Air France KLM submitted binding offers for a significant minority stake in the airline. The Portuguese government is seeking to sell a 44.9% stake to a strategic aviation partner, with an additional 5% reserved for employees, as it looks to strengthen TAP’s competitiveness, international network and long term financial position, as reported by Reuters and Euronews.
The two European aviation giants emerged as the only final bidders after International Airlines Group, the parent company of British Airways and Iberia, withdrew from the process. Air France KLM has offered to acquire between 44.9% and 49.9% of TAP and plans to develop Lisbon as its main Southern European hub, with stronger connections to the Americas and Africa. The group is also proposing expanded aircraft maintenance activities in Portugal, supported by its long standing partnership with TAP Maintenance and Engineering and its alliance with Delta Air Lines.
Lufthansa, meanwhile, wants to strengthen TAP as a key component of its European network and position Lisbon as a strategic hub for the South Atlantic. The German group already has a significant presence in Portugal and is developing a maintenance facility in the country, giving its proposal an industrial dimension beyond the airline stake itself. Lufthansa has also highlighted its existing partnership with TAP through the Star Alliance network.
The decision is expected in September after state holding company Parpública evaluates the binding proposals and submits its assessment to the government. Portugal has made clear that the winner will not be determined by price alone, with connectivity, investment, fleet development, maintenance, employment commitments and TAP’s broader contribution to the Portuguese economy forming part of the evaluation. The outcome could reshape European aviation while giving the winning airline greater access to TAP’s strategically important Lisbon hub and its established connections across Brazil, Portuguese speaking Africa and North America.
