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Lufthansa plans to integrate TAP Air Portugal within 18 months
Lufthansa Group aims to integrate TAP Air Portugal into its operations within twelve to eighteen months following regulatory approval. Commercial Director Dieter Vranckx indicated that the process is expected to be faster than the integration of ITA Airways, largely because TAP is already a member of the Star Alliance.
The Portuguese government recently selected Lufthansa to acquire up to 49.9 percent of TAP. Lufthansa intends to use this acquisition to strengthen its market share on routes between Europe and South America, specifically leveraging TAP’s extensive network from Lisbon to Brazil. Currently, Lufthansa’s market share on these routes is approximately nine percent, significantly lower than competitors IAG and Air France-KLM, which hold 20 percent and 17 percent respectively. Through the acquisition, Lufthansa expects its combined market share on these connections to rise to roughly 20 percent.
While Vranckx anticipates fewer regulatory hurdles than the ITA Airways deal due to less network overlap, competition authorities will still examine potential overlaps and may require corrective measures.
Entities
Dieter Vranckx · European Commission · Lufthansa Group · Star Alliance · TAP Air Portugal