Portugal has selected Lufthansa Group as the preferred partner to acquire a minority stake of up to 44.9% in TAP Air Portugal, defeating Air France-KLM in the state-owned carrier’s privatisation process. The Portuguese state will retain majority ownership, while up to 5% of TAP’s shares are reserved for employees. The decision was taken by the cabinet in Lisbon on Wednesday.
Lufthansa and Air France-KLM submitted improved final bids to state holding company Parpública on 30 September. Lufthansa’s proposal reportedly offered an all-cash payment, while Air France-KLM combined cash with shares in the Franco-Dutch group. The value of the competing offers has not been officially disclosed, although both bids were reported to exceed €1 billion.
The selection gives Lufthansa a stronger position at TAP’s Lisbon hub and access to the Portuguese airline’s extensive network to Brazil and other Latin American markets. TAP already belongs to Star Alliance, where Lufthansa is a leading member.
The decision does not complete the transaction. Lufthansa and Portugal must negotiate final terms and secure regulatory and European Union approval before the share transfer can proceed. Competition review could take 18 to 24 months, and Portuguese officials have indicated that the deal may not be completed until 2028. TAP will continue operating under its existing ownership, branding, routes and booking arrangements during the approval process.