Air France-KLM and Lufthansa submit binding TAP bids
Europe’s two largest airline groups have formally bid for a large minority stake in TAP Air Portugal, kickstarting the final phase of a privatisation that will reshape the continent's southern aviation market.
Air France-KLM and Lufthansa submitted binding offers on Tuesday to buy a 44.5% stake in TAP Air Portugal. Parpública, the state’s shareholding manager, confirmed the bids on Wednesday, marking the end of the third phase of the airline's privatisation.
Parpública confirmed the precise details of the submissions. "As part of the third stage of the process for the reference sale of 44.9% of TAP's share capital, PARPÚBLICA, SGPS, S.A. announces that it has received two binding proposals, submitted by the interested parties invited to do so after the conclusion of the second stage of the said transaction, Air France-KLM S.A. and Deutsche Lufthansa AG," the statement said.
The duel between Europe’s two largest airline groups underscores the strategic value of TAP’s network. Securing the Portuguese carrier gives the winner a dominant position on lucrative routes between Europe and South America. For European travellers, the acquisition will likely mean deeper integration into either the Air France-KLM or Lufthansa loyalty networks and scheduling systems.
Parpública now has 30 days to evaluate the documentation and deliver a report to the Portuguese government. This timeline pauses if the state entity requests further clarifications from the bidders. Following the review, the government retains the option to ask one or both airlines to submit improved final offers.
The proposals outline specific purchase prices alongside detailed industrial plans designed to ensure TAP’s long-term financial sustainability. The competition narrowed after International Airlines Group, the parent company of Iberia, withdrew from the process. The government of Luís Montenegro had relaunched the privatisation effort in 2025.
A decree law approved last year limits the private sale to a maximum of 49.9% of TAP’s capital. This structure ensures Lisbon remains the majority shareholder. Of that private chunk, 5% is ring-fenced for employees, though any unclaimed portion could be absorbed by the winning investor.
Infrastructure Minister Miguel Pinto Luz wants the privatisation wrapped up by September. Under the current timetable, the chosen investor could begin sharing management duties with TAP’s existing board in 2026. However, the actual capital injection is not expected until the summer of 2027.
