The partial privatization of TAP Air Portugal has just reached a major milestone. Lufthansa Group and Air France-KLM submitted their binding offers to acquire a stake in the Portuguese airline on July 29, 2026. The government must now choose between two projects that target the same asset but have different network strategies.
Portugal plans to sell 44.9% of its stake in TAP Air Portugal to a strategic investor. An additional 5% stake is reserved for employees, bringing the total share potentially divested from state ownership to 49.9%.
The Portuguese state will therefore retain majority and control of the company following this first operation.
Summary
Two binding offers submitted for TAP Air Portugal
Air France-KLM and Lufthansa Group have confirmed that they have submitted their offers to Parpública, the public company in charge of managing the Portuguese state's holdings.
The two groups were already the only candidates still in the running after the submission of non-binding proposals in April 2026. The Portuguese government had then considered that their projects were similar, ambitious and in line with the strategic, industrial and financial criteria of the procedure.
The amounts of the binding offers have not been made public. According to the trade press, the candidates will be judged on several criteria and not solely on the price offered.
Portugal wants to retain control of the company
The privatization of TAP Air Portugal does not constitute a complete sale. The Portuguese government is seeking an airline partner capable of providing financial resources, a broader international network, and industrial synergies, while maintaining TAP as the national carrier.
The specifications cover, in particular, air connectivity, investments in the fleet, the development of maintenance in Portugal, ten-year growth and environmental commitments.
The government is also asking candidates to submit a plan for Portuguese airports beyond Lisbon. Porto is explicitly mentioned, as are Faro, Madeira, and the Azores.
Why is TAP Air Portugal of such interest to both groups?
TAP Air Portugal has a particularly well-developed network between Lisbon and Brazil. The airline also serves several markets in Portuguese-speaking Africa as well as destinations in the United States.
This location gives its Lisbon hub a unique position between Europe, South America, Africa, and North America. The company's routes and network to Portuguese-speaking countries are a central part of the industrial interest in this case.
TAP is also a member of Star Alliance, as is Lufthansa. Air France and KLM, for their part, belong to SkyTeam. The choice of the future shareholder could therefore have consequences for commercial partnerships and, in the longer term, for TAP's alliance. However, no change in alliance has been officially announced.
Lufthansa wants to strengthen Lisbon within its Atlantic network
Lufthansa Group indicates that it wants to initially acquire a minority stake in TAP Air Portugal and establish a long-term partnership.
The German group wants to position Lisbon as a strategic hub for the South Atlantic, with connections to Latin America, Africa and North America.
Lufthansa also highlights its industrial presence in Portugal. The group states that it offers 353 weekly flights there and employs more than 500 people.
A Lufthansa Technik facility is under construction in Santa Maria da Feira, near Porto. This 55,000-square-meter plant will be dedicated to the repair of engine parts and aircraft components. It is scheduled to open in 2028, with up to 700 jobs expected to be created.
Lufthansa also cites its experience with SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways. The group uses these references to defend its model of integrating national airlines into a larger group.
Air France-KLM aims for up to 49.9% of TAP
Air France-KLM announced that it had submitted a binding offer for a stake of between 44.9% and 49.9% of the capital of TAP Air Portugal.
The upper limit will depend in particular on the number of shares actually subscribed by employees within the framework of the portion reserved for them.
The Franco-Dutch group plans to make Lisbon its sole hub in Southern Europe. Its project covers passenger transport, freight, maintenance and the loyalty program.
Air France-KLM says it wants to develop TAP's links to the Americas and Africa, strengthen maintenance activities in Portugal and integrate the company into its commercial agreements.
Delta Air Lines, Air France-KLM's partner in the transatlantic joint venture, has publicly supported this bid. This support does not mean that Delta is directly involved in the announced acquisition.
What is confirmed and what remains to be decided
The submission of the two binding offers is confirmed. The share offered to the strategic investor, the general selection criteria, and the maintenance of the public majority are also established.
However, the price offered by each candidate, the detailed commitments, the future governance of TAP and the possible consequences for Star Alliance are not publicly known.
It is therefore too early to announce an increase in capacity, the opening of new routes, a change in fares or an evolution of the Miles&Go loyalty program.
A decision is possible between the end of August and the beginning of September
Parpública must analyze the bids and submit its report to the Portuguese government. The timetable presented in April anticipates this evaluation during the month of August.
The government had then indicated that a decision could be taken in the Council of Ministers between the end of August and the beginning of September 2026. This timetable remains provisional and may change depending on the review of the files or possible additional negotiations.
For TAP Air Portugal, the decisive stage has now begun. Lufthansa and Air France-KLM have confirmed their bids, but no buyer has yet been selected and no operational changes have been finalized at this stage.
Sources
- https://www.reuters.com/legal/transactional/portugal-awaits-binding-bids-tap-air-france-klm-lufthansa-face-off-2026-07-29/
- https://www.reuters.com/legal/transactional/portugal-says-strategy-not-just-price-will-decide-tap-stake-buyer-2026-07-15/
- https://portugal.gov.pt/en/gc25/communication/news/taps-privatisation-moves-to-final-phase-with-two-bidders
- https://www.airfranceklm.com/fr/newsroom/communiques-de-presse
- https://newsroom.lufthansagroup.com/lufthansa-group-gibt-angebot-fuer-minderheitsbeteiligung-an-tap-air-portugal-ab/
- https://newsroom.lufthansagroup.com/baubeginn-fuer-55000-quadratmeter-grosse-anlage-von-lufthansa-technik-portugal/
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