Bloomberg
• Henrique Almeida, Sonja Wind
Portugal’s Council of Ministers selected Lufthansa Group to acquire a minority stake in TAP Air Portugal, ending a privatization contest with Air France-KLM. Reports put the proposed share at 44.9% and the bid at €1.2 billion; the government said Lufthansa’s proposal was financially stronger.
TAP Air Portugal
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Portugal’s Council of Ministers selected Lufthansa Group to acquire a minority stake in TAP Air Portugal, ending a privatization contest with Air France-KLM. Reports put the proposed share at 44.9% and the bid at €1.2 billion; the government said Lufthansa’s proposal was financially stronger.
Portugal is expected to name a buyer for a 44.9% interest in TAP Air Portugal, with Lufthansa reportedly ahead of Air France-KLM. SIC reports Lufthansa’s all-cash offer outpaces its rival’s bid; the Portuguese government’s decision was expected Wednesday.
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Air France-KLM and Lufthansa have submitted improved binding offers for stakes of up to 49.9% in TAP Air Portugal, closing the bidding phase. Portugal plans to select a strategic partner by mid-October, while Air France-KLM proposes Lisbon as its sole southern European hub.
Air France-KLM is prepared to offer Portugal a stake in the airline group as part of its proposed acquisition of TAP, according to a person familiar with the matter. The structure is intended to strengthen Air France-KLM’s position against a competing offer from Deutsche Lufthansa.
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Air France-KLM has offered Lisbon a share-swap option in connection with TAP Air Portugal, signaling a potential path for the Portuguese carrier’s ownership and strategic alignment. The proposal puts the structure of any transaction, rather than only its valuation, at the center of discussions.
Portugal’s Council of Ministers has approved the start of negotiations with Lufthansa Group and Air France-KLM for the acquisition of a 44.9% stake in TAP Air Portugal, moving the reprivatization process into its final-proposal phase and setting up a direct competition between the two European airline groups.
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Portugal will open a further negotiation round with Lufthansa Group and Air France-KLM after rating their binding bids for a minority stake in TAP as broadly equivalent. Both airline groups will have additional weeks to improve their financial proposals before the government selects a preferred investor.
TAP Air Portugal reported growing losses in the first half of 2026 as the Portuguese carrier awaits a decision on its planned sale. Air France-KLM and Lufthansa Group are competing to become TAP’s new owner, adding financial pressure to an already consequential privatization process.
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