Two of Europe’s largest airline groups have formally entered the race to acquire a minority stake in TAP Air Portugal, with Air France-KLM and Lufthansa Group each submitting bids to Portuguese state investment company Parpública as part of the carrier’s privatisation process.
Both groups say their proposals go well beyond a financial investment, presenting long-term industrial strategies aimed at strengthening TAP while preserving its Portuguese identity and reinforcing Lisbon’s role as a major European gateway.
Air France-KLM targets up to 49.9% stake
Air France-KLM has submitted a binding offer to acquire between 44.9% and 49.9% of TAP, describing its proposal as a comprehensive long-term plan covering passenger operations, cargo, loyalty programmes and maintenance, repair and overhaul (MRO).
The Franco-Dutch group intends to position Lisbon as its sole Southern European hub, expanding connectivity to the Americas and Africa while capitalising on TAP’s strong position in the Brazilian market. The proposal would integrate TAP into the commercial network of Air France, KLM and Transavia, while preserving the airline’s brand, headquarters, management and Lisbon hub.
A key element of the bid is the expansion of MRO activities in Portugal. Air France-KLM plans to develop new maintenance facilities alongside TAP Maintenance & Engineering, with which it has partnered for more than 20 years. The investment would focus on next-generation aircraft and engine maintenance, create highly skilled jobs and introduce advanced digital and artificial intelligence technologies.
The proposal has the backing of Delta Air Lines, Air France-KLM’s long-standing transatlantic joint-venture partner. Should the acquisition proceed, Delta intends to negotiate a broader commercial partnership with TAP, including reciprocal codeshare services and frequent flyer benefits, further strengthening connectivity across the North Atlantic.
Air France-KLM Chief Executive Benjamin Smith said the offer represents “a strategic, extensive and comprehensive long-term plan for TAP and for Portugal as a whole“, while Delta CEO Ed Bastian said the investment would expand transatlantic travel options and reinforce Portugal’s role as both a business and leisure destination.
Lufthansa highlights industrial investment
The Lufthansa Group has also submitted a bid for an initial minority stake, proposing a long-term partnership designed to secure TAP’s future as Portugal’s national carrier.
Chief Executive Carsten Spohr said the investment would be “the next logical step” in the group’s long-standing relationship with Portugal, where Lufthansa has operated for more than 70 years.
The German airline group currently offers 353 weekly flights to and from Portugal and employs more than 500 people in the country. That figure is expected to exceed 1,000 employees by 2030 following the construction of a new Lufthansa Technik facility in Santa Maria da Feira near Porto for engine and aircraft component repairs.
Lufthansa argues that its experience integrating airlines such as Swiss International Air Lines, Austrian Airlines, Brussels Airlines and ITA Airways demonstrates its ability to preserve national identities while delivering sustainable growth.
Under its proposal, Lisbon would become a strategic Atlantic hub within the Lufthansa Group network, supporting expanded connectivity between Europe and Latin America, Africa and North America.
Strategic importance
The competing bids underline TAP’s strategic value within European aviation. The Portuguese carrier occupies a unique position thanks to its extensive network to Brazil, Africa and the North Atlantic, making it one of Europe’s most attractive acquisition targets.
The Portuguese government is expected to evaluate the competing proposals in the coming months as it advances the airline’s long-awaited privatisation process. Both Air France-KLM and Lufthansa have pledged to preserve TAP’s national identity while using their respective global networks, financial strength and industrial expertise to support the airline’s long-term growth.