Air France-KLM and Lufthansa compete for stake in TAP Air Portugal

The partial privatization of TAP Air Portugal has entered its final stage, with Air France-KLM and Lufthansa emerging as the primary contenders for a stake of up to 49.9%. Both groups submitted binding offers before the July 30 deadline. IAG, the parent company of Iberia and British Airways, withdrew from the process in April.

Air France-KLM’s proposal focuses on establishing Lisbon as its unique hub in Southern Europe, leveraging TAP’s strong connections to Brazil and Africa. The Brazilian market is a critical asset for the airline, accounting for approximately 30% of its annual turnover. The group intends to integrate TAP’s passenger, freight, loyalty, and maintenance operations into its existing ecosystem.

Parpública, the state holding company managing the sale, has 30 days to evaluate the bids and report to the Portuguese government. A winner is expected to be announced by the Council of Ministers in September, pending approval from competition authorities. The Portuguese government plans to retain at least 50.1% control of the airline.