Air France-KLM and Lufthansa Group have submitted binding offers for a minority stake in TAP Air Portugal, escalating a competition that could reshape airline connectivity between Europe, Africa and the Americas.
Both European airline groups submitted preliminary non-binding proposals in April before moving forward with formal bids on July 29. The Portuguese government, which owns TAP, plans to sell up to 49.9% of the airline as part of a privatization process expected to conclude in late August or early September.
A 44.9% stake is intended for an outside investor, while 5% is reserved for TAP employees. Air France-KLM said its offer covers between 44.9% and 49.9% of the carrier. Lufthansa did not disclose the exact stake it is seeking, and neither group revealed how much it is offering.
The competition is about much more than acquiring a minority share in a national airline. TAP’s Lisbon hub gives the winning bidder access to one of Europe’s strongest networks linking the continent with Brazil, Portuguese-speaking Africa and other South Atlantic markets.
Lisbon Could Become a Powerful Southern European Hub
Air France-KLM has promised to position Lisbon as its unique southern European hub. The group said its proposal covers TAP’s passenger operations, cargo business, loyalty program, and maintenance, repair and overhaul activities.
The acquisition would strengthen Air France-KLM’s position in the Americas and Africa while adding Lisbon to a network already centered around Paris Charles de Gaulle and Amsterdam Schiphol. Delta Air Lines, Air France-KLM’s transatlantic joint venture partner, has publicly supported the bid.
Delta CEO Ed Bastian said the proposed investment could expand transatlantic travel options and reinforce Portugal’s role as both a business and leisure destination. Delta’s involvement also suggests that TAP could become more closely integrated into Air France-KLM’s wider North Atlantic strategy.
Lufthansa is making a similar case for Lisbon, describing the city as a strategic hub for the South Atlantic. CEO Carsten Spohr said the group wants to strengthen TAP as Portugal’s national airline while developing it into the leading carrier for the region.
Lufthansa already operates 353 weekly flights to and from Portugal. Its airline portfolio includes Lufthansa, Swiss, Austrian Airlines, Brussels Airlines and ITA Airways, giving the group experience integrating national carriers while preserving their individual brands.
TAP Offers Something Europe’s Airline Groups Still Need
TAP is one of the few remaining state-owned airlines in Europe and operates a fleet of roughly 100 Airbus aircraft. The carrier has around 7,700 employees and an unusually valuable network connecting Europe with Brazil, where it serves more destinations than many larger competitors.
Portugal renationalized TAP in 2020 as the pandemic created severe financial pressure. Following restructuring and a recovery in international travel, the government is now seeking an airline partner capable of supporting long-term investment and network growth.
For Portugal, the choice will involve more than the highest financial offer. Officials will need to assess which bidder offers stronger guarantees for TAP’s brand, workforce, routes and Lisbon hub.
Air France-KLM could use TAP to deepen its partnership with Delta and strengthen its southern European presence. Lufthansa could add another national carrier to its expanding multi-airline group and improve its position across the Atlantic.
Either outcome would further consolidate Europe’s airline industry. The decisive question is whether TAP becomes the southern anchor of Air France-KLM’s network or the next major member of Lufthansa’s growing airline portfolio.
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