Portugal has opened a fresh negotiation round with Air France-KLM and Lufthansa over TAP Air Portugal’s privatisation after judging their binding bids too close to separate immediately. The government will now seek improved offers for the 44.9% stake on sale, with another 5% reserved for employees and the state retaining control of the Lisbon-based flag carrier.
Cabinet and Presidency Minister António Leitão Amaro outlined the move in Lisbon after Parpública, the state holding company, delivered its assessment earlier in the week. The process is now heading into a final negotiation phase rather than an immediate award, with both bidders expected to have about three weeks to refine their proposals.
Government sources and local coverage point to a decision around mid-October, although that timing remains an expectation rather than a formal award date. The privatisation framework allows Portugal to sell up to 49.9% initially and, under the decree-law governing the process, later transfer its remaining 50.1% stake to the strategic investor. TAP remains central to Portugal’s air transport network and long-running efforts to secure a partner able to strengthen its international reach and competitiveness.