Lufthansa, Air France-KLM submit rival bids for TAP stake

Europe's two largest airline groups filed competing binding offers on Wednesday for a minority stake in Portugal's flag carrier TAP Air Portugal, setting the stage for a decision that could reshape transatlantic aviation routes for decades.

Lufthansa Group Deutsche Lufthansa AG and Air France-KLM both confirmed they submitted their proposals to Parpública, Portugal's state-owned investment company, on the final day of the deadline. The Portuguese government is seeking to sell a 44.9% stake to a strategic airline partner, with an additional 5% reserved for employees. Neither company disclosed the financial terms of its offer.airlinegeeks+3

A Contest Over Strategy, Not Just Price

Air France-KLM said it is bidding for between 44.9% and 49.9% of the carrier and pledged to position Lisbon as its "unique southern European hub," expanding connectivity to the Americas and Africa. Lufthansa did not specify the size of its desired stake but emphasized strengthening Lisbon as "a strategic Atlantic hub" within its network.airdatanews+1

"What we have submitted today is not just a proposed price for an airline," Air France-KLM CEO Benjamin Smith said in a statement. "It is a strategic, extensive, and comprehensive long-term plan for TAP and for Portugal as a whole."airlinegeeks

Lufthansa Group CEO Carsten Spohr framed the bid as a natural extension of the company's decades-long presence in Portugal: "Our interest in taking a stake in our Star Alliance partner TAP Air Portugal is the next logical step."airdatanews

Delta Air Lines ↗ 1.80% CEO Ed Bastian backed the Air France-KLM bid, saying the investment "would enhance transatlantic travel options and Portugal's role as an enhanced business and leisure destination."airlinegeeks

What Happens Next

Infrastructure Minister Miguel Pinto Luz has said that "this is a strategic decision that should not be reduced to price alone," with the government weighing commitments on connectivity, jobs, and investment across Portugal — including Porto, the Azores, and Madeira.aol

Parpública now has 30 days to evaluate the proposals and report to the government, which has targeted a decision between late August and early September. Bernstein analysts have valued the 44.9% stake at around €700 million based on a €1.5 billion enterprise valuation for the airline.airwaysmag+1

TAP, renationalized in 2020 after pandemic losses, operates roughly 100 Airbus aircraft and employs around 7,700 people. The carrier's prized route network linking Lisbon with Brazil, Portuguese-speaking Africa, and North America makes it one of Europe's last mid-sized airlines still available for investment — and a prize neither bidder can afford to let the other claim.today.rtl+1