Lufthansa and Air France-KLM Bid for TAP Air Portugal Stake

Lufthansa Group and Air France-KLM have submitted non-binding offers for a minority stake in TAP Air Portugal. The contest highlights how major European airline groups are still seeking network expansion through selective consolidation.

By Laura Mitchell | Edited by Yuliya Karotkaya Published: Updated:

Lufthansa Group and Air France-KLM have each submitted non-binding offers for a minority stake in TAP Air Portugal, according to the companies. The bids are part of Portugal’s renewed privatization process, which offers up to 49.9 percent of the airline, including a 44.9 percent stake for an outside investor and 5 percent reserved for employees. International Airlines Group had also shown interest earlier but later withdrew from the process.

Air France-KLM said TAP’s Lisbon hub, established brand, and network make it an attractive strategic target. The group said that, if successful, it would position Lisbon as its southern European hub, improving connectivity to the Americas and Africa, with Brazil identified as a particularly important market. Lufthansa has disclosed fewer details publicly, but CEO Carsten Spohr has said TAP would fit well within Lufthansa’s multi-hub structure and help address the group’s weaker position in Latin America.

The contest reflects the continuing importance of scale and network depth in European aviation. TAP offers bidders a strong hub in Lisbon and valuable long-haul exposure, especially across the Atlantic. Any deal, however, would likely face political scrutiny and antitrust review, making strategic fit only one part of the decision.