Lufthansa seeks major stake in TAP Air Portugal

Lufthansa is reportedly leading in the race to acquire a significant stake in TAP Air Portugal, according to Portuguese media. The German airline is said to be close to securing 44.9% of the company, surpassing Air France-KLM in the competition. A decision by the Portuguese government is expected soon after an extraordinary cabinet meeting.

Lufthansa’s offer seen as more favorable

Lufthansa’s fully cash offer is considered more advantageous for the Portuguese state than Air France-KLM’s proposal, which combines cash and shares. The financial strength of the German airline is said to have influenced the assessment. No sale price or complete financial details of the offers have been made public.

Stake sale does not involve full ownership

The plan does not involve the sale of the entire company. The 44.9% stake would go to a strategic investor, with up to 5% reserved for employees, allowing the state to retain at least 50.1% of TAP. The government evaluates candidates based on criteria beyond price, including financial capacity, industrial projects, and connectivity.

Lufthansa sees strategic value in TAP’s network

Lufthansa’s interest in TAP lies in its network connecting Europe, Brazil, and Lusophone Africa. Lisbon would serve as a strategic hub for the German airline to strengthen its Atlantic operations and develop connections to North America. TAP is already a partner within the Star Alliance, which the Lufthansa Group sees as a point of commercial continuity in the proposed merger.

Lufthansa’s industrial presence in Portugal

Lufthansa also highlights its industrial presence in Portugal, including over 500 employees and plans to exceed 1,000 by 2030, partly due to a new Lufthansa Technik installation in Santa Maria da Feira, near Porto, for repairing engine parts and aeronautical components. This goes beyond network synergies.

Air France-KLM also sees value in TAP

Air France-KLM also emphasized Lisbon as its only hub in Southern Europe, proposing to anchor TAP's development to a stronger European entity. The rivalry between the two candidates emerged after IAG, the parent company of British Airways and Iberia, withdrew from the competition. Even if Lufthansa is confirmed as the preferred bidder, the final negotiation with the Portuguese government would still be required.