Lufthansa CEO Carsten Spohr has defended the group’s planned €1.025 billion acquisition of a 44.9% stake in TAP Air Portugal, arguing that capital should be directed to markets offering the strongest returns. The investment will give Lufthansa a platform in Portugal, including eight Airbus A350-900s transferred to TAP after 2030 and planned expansion of the Portuguese carrier’s fleet.
Speaking at an employee meeting in Munich, Spohr described Portugal as offering lower structural costs and a more favourable tax environment than Germany. He identified TAP, Lufthansa Cargo and Lufthansa Technik as potential “profit pools” for the group, rather than focusing investment solely on its German core operations.
The base transaction values TAP at €2.552 billion. Up to 5% of the airline is initially reserved for employees; if those shares are not taken up, Lufthansa’s stake and consideration could rise to 49.9% and approximately €1.2 billion. Lufthansa has indicated that the initial investment can be financed from existing liquidity.
Lufthansa outbid Air France-KLM in the Portuguese privatisation process. Vereinigung Cockpit has criticised the price as exceptionally high, while Handelsblatt reported that TAP has fewer established cargo and maintenance activities than Lufthansa’s corresponding businesses. Lufthansa Aviation Training also plans future operations in Portugal.