Portugal has pushed Lufthansa and Air France-KLM into a final round of talks over the privatisation of TAP Air Portugal after judging their binding offers too close to split. The state is selling a 44.9% minority stake in the flag carrier, with a further 5% reserved for employees, and both airline groups must now improve their bids before Lisbon names a preferred partner.
The negotiation phase is expected to last about three weeks, after which the government plans to choose a single bidder for the stake. Parpública, the state holding company overseeing the process, had already delivered its assessment to ministers earlier in the week. Neither offer has been made public, but officials concluded that the two submissions were broadly similar, prompting talks with both groups instead of an immediate selection.
TAP’s sale remains strategically important for Portugal because of the carrier’s role in the country’s hub network and long-haul connectivity. Air France-KLM has argued that its proposal covers TAP’s passenger, cargo, loyalty and maintenance businesses, reflecting a broader industrial approach. The transaction is still subject to competition review and other approvals, and a final transfer could take until 2027.