TAP Air Portugal privatization: Lufthansa and Air France-KLM compete for stake

The privatization process for TAP Air Portugal has reached a critical stage, with Lufthansa and Air France-KLM emerging as the primary contenders for a 44.9% stake in the national carrier. While the Portuguese government describes the competing bids as being neck-and-neck, a significant structural difference has emerged regarding the method of payment.

Reports indicate that Air France-KLM has proposed a share swap, offering its own stock in exchange for TAP shares. In contrast, Lufthansa is reportedly making a cash offer. The Portuguese government is expected to determine the best proposal by mid-October, though a final decision could extend toward 2026.

Francisco Calheiros, president of the Confederation of Tourism of Portugal (CTP), has expressed strong support for the airline, describing himself as a ‘TAPista’. He emphasized that the carrier is vital to Portuguese tourism and argued that joining a larger aviation platform would provide essential synergies in purchasing power for aircraft, fuel, and insurance. Calheiros noted that while the current sale covers a minority stake, he hopes for a full 100% privatization in the near future to allow buyers to fully integrate the airline.