Air France-KLM, Lufthansa submit binding offers for TAP stake

Air France-KLM and Lufthansa said on Wednesday they had submitted binding offers for a minority stake in TAP, as the competition for one of Europe’s few remaining standalone flag carriers entered the final stage. Lisbon relaunched TAP’s long-delayed privatisation in July 2025, aiming to sell a ​44.9% stake to a strategic airline partner capable of boosting the carrier’s global reach and competitiveness. The government has ​said that TAP needs to be part of a larger airline group, warning that EU ⁠state-aid rules prevent further public funding and leave the company vulnerable to future global shocks.

Air France-KLM and Lufthansa emerged as ​the sole contenders after submitting non-binding offers in April, with the government describing both proposals as “largely equivalent and very ambitious” in ​strategic, industrial and financial terms. Air France-KLM said that, if selected, it would make Lisbon its sole hub in southern Europe, strengthening TAP’s links with the Americas and Africa and building on the Portuguese carrier’s strong position on routes to Brazil. Lufthansa said that, as ​the largest airline group outside the United States, it could provide TAP with “necessary scale, experience, and financial stability”, citing ​its track record in developing SWISS, Austrian Airlines, Brussels Airlines and ITA Airways while maintaining their national brands.

TAP’s main attraction is its prized ‌and ⁠lucrative slots linking its Lisbon hub with Brazil, Portuguese-speaking African countries and the United States, important routes for Portugal’s diaspora, tourism and investment. Unlike a conventional privatisation, Infrastructure Minister Miguel Pinto Luz said this month that the decision was a strategic one that should not be reduced to price alone. The government wants TAP’s next partner to back growth across Portugal, strengthening operations and ​connections not only in Lisbon ​but also in Porto, ⁠Faro, the Azores and Madeira.

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Air France-KLM CEO Benjamin Smith said the group’s binding offer was “not just a proposed price” but a long-term plan for TAP, which was backed ​by partner Delta Air Lines and aimed at creating a European global aviation champion. Chief Executive ​Carsten Spohr said ⁠Lufthansa’s interest in TAP, its Star Alliance partner, was the next logical step, with the aim of strengthening it within the Lufthansa Group while positioning Lisbon as a strategic South Atlantic hub. Bernstein analysts valued TAP’s 44.9% stake at around €700 million ($798 million), based on ⁠a valuation ​of €1.5 billion for the entire airline. The government and the airlines did ​not disclose the value of the binding offers.

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