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Airline Industry · Aviation Hubs · European M&A · Privatization
Air France-KLM and Lufthansa submitted non-binding offers for a 44.9% minority stake in Portugal's state-owned flag carrier TAP, with British Airways-owner IAG also expressing initial interest, as Lisbon advances its long-delayed privatization plans.
Portugal aims to sell the stake to a strategic airline partner to expand TAP's global reach and competitiveness, reserving an additional 5% for TAP employees. Air France-KLM CEO Benjamin Smith stated TAP is a "natural fit" for their multi-hub strategy, positioning Lisbon as its sole southern European hub connecting the Americas and Africa.
Lufthansa CEO Carsten Spohr previously asserted his group would be TAP's "best partner," bolstering Lisbon's role as an Atlantic hub. The primary attraction of TAP involves its lucrative Lisbon hub slots for routes to Brazil, Portuguese-speaking African countries, and the United States, which the government intends to preserve and expand.
The non-binding offers, due April 2, 2026, must include a suggested price, an industrial and strategic plan, and expected synergies. The state holding company Parpublica will prepare a report within 30 days, then invite selected bidders to submit binding proposals within 90 days.
The government retains the option to sell its remaining 50.1% to the successful bidder of the minority stake. The privatization process concludes in the second half of 2026.
