Portugal’s government has selected Air France-KLM and Lufthansa to submit binding offers for a controlling stake in TAP Air Portugal as part of the state-owned carrier’s privatization process.
The decision follows non-binding bids from both airlines earlier this month, which included proposed prices and industrial plans for the 49.9% stake the government intends to sell. Portugal rescued TAP during the Covid-19 pandemic and announced last September its plan to bring in a major international airline partner.
Air France-KLM expressed strong interest in the opportunity, viewing it as a way to establish Lisbon as a hub for its southern European network. Lufthansa, Germany’s largest carrier, is also advancing in the process. International Consolidated Airlines Group, parent of British Airways and Iberia, showed initial interest but did not submit a bid.
Infrastructure Minister Miguel Pinto Luz, overseeing the privatization, indicated a final decision could come in August or early September. Bidders have three months to lodge their binding offers.