Portugal has selected Lufthansa Group as the strategic investor for the partial privatisation of TAP Air Portugal, rejecting rival bidder Air France-KLM. The first-stage transaction covers up to 49.9% of TAP, with Lufthansa acquiring 44.9% and up to 5% reserved for employees, for a total value of €1.201 billion. The Portuguese state will retain a 50.1% majority stake.
Prime Minister Luís Montenegro confirmed the decision after the Council of Ministers approved the selection. The government assessed Lufthansa’s financial offer as 16% higher than Air France-KLM’s and subject to less uncertainty. Both groups submitted final binding offers on 30 September, following a competitive process lasting more than a year.
Lufthansa’s industrial plan was also central to the decision. It envisages increasing TAP’s fleet from 101 aircraft to 117 by 2035 and potentially 130 aircraft thereafter, depending on the development of Lisbon’s new airport. The plan includes stronger international growth, particularly in Latin America, greater activity at Porto Airport, more destinations and connections, and continued service to Portugal’s islands. TAP is expected to retain its brand, headquarters and Lisbon hub.
The operation is not yet complete. Final documentation and regulatory approvals remain necessary, with closing expected by early 2028. Portugal also plans a separate second phase for the sale of a majority stake, whose timing and conditions have not been finalised.