On September 30, Air-France-KLM and Lufthansa submitted their improved firm offers to acquire a stake in TAP Air Portugal, the national airline of Portugal. The Portuguese government is now faced with a decision that goes beyond the financial aspects: it involves shaping the future of the Lisbon hub and maintaining the airline's transatlantic connections. The offers differ in the percentage of the capital they propose to buy. Air-France-KLM and Lufthansa are offering 44.9% of the capital for direct sale to an investor, while 5% is reserved for the airline’s employees. If employees do not purchase their share, the selected investor could end up with up to 49.9%, leaving the state with a majority stake. Both companies completed the final stage of the bidding process, as confirmed by Parpública, the entity responsible for managing the Portuguese state's share in TAP Air Portugal. The company has received the updated proposals and will now evaluate them before submitting a report to the government. However, the specific amounts offered have not been disclosed publicly. The two groups initially submitted their offers on July 29. In early September, the Portuguese government opted to invite them to a final negotiation phase instead of immediately selecting a winner. The deadline for the sale process has been set for December 31, 2026, to allow time for evaluating the proposals and preparing the necessary contractual documents. Air-France-KLM’s proposal focuses on making Lisbon its only hub in Southern Europe. The company promises to enhance TAP Air Portugal's connectivity while supporting its growth in cities like Porto. It also includes plans for freight operations, loyalty programs, and aircraft maintenance. According to Benjamin Smith, the general director of Air-France-KLM, the offer aims to strengthen TAP Air Portugal as a national carrier with Lisbon as the central hub for the Air-France-KLM group in the region. He also emphasizes job creation and economic value in Portugal. However, the exact contractual details of the offer remain undisclosed. Before the final submission of offers, a financial detail had emerged. According to Jornal Económico, Air-France-KLM had considered the possibility of paying for the acquisition in part with shares from its group, an option allowed in the tender specifications. When asked about this, the company did not comment on the financial terms. Lufthansa, on the other hand, claims to have submitted an "updated and improved" offer. In a statement cited by ECO, the German airline describes itself as the "best partner" for TAP Air Portugal’s growth, competitiveness, and continued role as the national carrier. Lufthansa highlights its experience in managing network airlines within its group. An important distinction between the two bidders lies in their airline alliances. TAP Air Portugal and Lufthansa are already part of the Star Alliance, which could facilitate commercial cooperation. Air-France-KLM, however, belongs to SkyTeam. If Air-France-KLM were to win, it could raise the question of whether TAP Air Portugal would switch alliances, though no such decision has been made yet. Both contenders are interested in TAP Air Portugal’s network, which includes Lisbon as a key transfer point to the Atlantic, particularly Brazil. In 2025, TAP Air Portugal transported 16.7 million passengers, showing the strategic importance of the airline. For the Portuguese government, maintaining these connections and the role of Portuguese airports is a key objective of this partial privatization. Portuguese Minister of Infrastructure, Miguel Pinto Luz, stated that the government will take about 15 days after receiving the offers to make its decision, expected around mid-October. The selected bidder would then participate in final negotiations. Even after the decision, the transaction will require contractual formalities and regulatory approvals.