The competition for a 44.9 percent minority holding in the Portuguese flag carrier has entered its final stage as the two aviation giants present their formal bids.
Lufthansa and Air France-KLM submit binding offers for stake in TAP
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Air France-KLM and Lufthansa have submitted binding offers to acquire a 44.9 percent stake in TAP, marking the final stage in the race for one of Europe’s few remaining standalone flag carriers.
Lisbon relaunched the long-delayed privatisation of the airline in July 2025, seeking a strategic partner that could boost the carrier’s global competitiveness. While analysts have valued the 44.9 percent stake in TAP at approximately €700 million (US$798 million) based on a €1.5 billion total valuation for the airline, the specific value of the offers remains undisclosed, Reuters reports.
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The Portuguese government expects to announce a successful bidder by September. Should the process proceed as planned, the winning group could assume co-management of TAP as early as 2026. The formal entry into the airline’s capital structure is estimated for the summer of 2027, contingent upon receiving the “green light” from Brussels.
Air France-KLM and Lufthansa were the sole contenders to submit binding offers, following an earlier non-binding phase in April where the government characterised both proposals as “largely equivalent and very ambitious.”
Stake in TAP: the strategies
Each group has outlined distinct strategies for the acquisition. Air France-KLM intends to establish Lisbon as its sole hub in southern Europe, aiming to bolster TAP’s existing strength on routes to Brazil, Africa, and the Americas. Lufthansa, highlighting its status as the largest airline group outside the United States, has focused on its track record of developing carriers such as Swiss, Austrian Airlines, and ITA Airways, while promising to maintain their respective national brands.
The primary attraction for both bidders remains TAP’s lucrative slots, which connect Lisbon to vital markets for Portuguese tourism, investment, and the diaspora. The sale of a stake in TAP represents a pivotal moment in the restructuring of the airline, which has faced years of state intervention and financial turbulence.
