TAP Air Portugal privatization enters negotiation phase with Lufthansa and Air France-KLM

The Portuguese government has approved the start of a negotiation phase with Lufthansa and Air France-KLM regarding the acquisition of up to 44.9% of TAP Air Portugal. This move is a key step in the reprivatization process of the state-owned airline.

While the Council of Ministers has agreed to engage with both groups, officials indicated that the current proposals—reported to be around 1,000 million and 1,200 million euros—could be improved. The government aims to secure better terms, noting that these figures are significantly lower than the 3,200 million euros the state has injected to maintain the airline's operations.

Under the proposed structure, the Portuguese state will retain majority ownership, while 5% of the shares will be allocated to employees. The two groups will now be invited to present final, improved proposals to serve as the basis for the final investor selection.