Air France-KLM Takes First Step to Acquire Stake in TAP Air Portugal
Air France-KLM has become the first airline group to officially submit an expression of interest in acquiring a stake of up to 44.9% in TAP, the Portuguese state-owned airline. This was confirmed by its CEO, Ben Smith, in a telephone interview on Tuesday evening.
The move marks the beginning of a multi-stage process in which the Portuguese government is seeking a strategic partner for the airline. Of the total stake for sale, 5% will initially be reserved for TAP’s employees.
Process Requirements and Criteria
The deadline for this first round of expressions of interest is November 22. According to the terms set by the government, bidders must be airlines or airline groups that have recorded annual revenues of at least 5 billion euros ($5.8 billion) in any of the last three years.
Proposals will be evaluated based on three main criteria:
- Strategic plan for TAP
- Economic offer presented
- Commitments regarding fleet and route network expansion, with an emphasis on Lusophone (Portuguese-speaking) destinations
The Portuguese government considers the maintenance of the Lisbon hub a non-negotiable strategic point.
→ TAP Air Portugal to Launch Lisbon – Curitiba (Brazil) Flights Starting July 2026
Air France-KLM’s Commitments
Ben Smith assured that, should the deal go through, the Franco-Dutch group would maintain the TAP brand, retain Lisbon as an operational hub, and continue investing in the airline’s route network “with all the tools we have available.”
Political Context and Timeline
The submission of the letter of interest by Air France-KLM coincides with an ongoing police investigation that led Portuguese authorities to search TAP’s offices this week. The investigation is related to the sale of 61% of the airline in 2015, a privatization that was later reversed by a newly elected socialist government.
Qualified bidders are expected to be invited in January to submit non-binding offers by around April 1. Final bids should be submitted approximately three months later, and the government will select the buyer shortly after that date.
TAP: A Coveted Piece on European Chessboard
Besides Air France-KLM, other major groups such as Deutsche Lufthansa AG and the holding company IAG SA (owner of British Airways) have expressed interest in the past year. TAP stands out as one of the few remaining state-owned airlines still available in Europe, a market increasingly concentrated around three large conglomerates.
According to Bernstein analyst Alex Irving, “TAP is the next big deal in European aviation.” In his analysis, he considers that IAG could have an advantage over its competitors, as it is not currently immersed in integrating other airline networks.
Strength in Key Markets
TAP’s appeal lies in its strong position on routes to Brazil, its presence in Africa, and its connections with North America. In 2024, the airline carried 16 million passengers, representing a 1.6% increase compared to the previous year. Since 2022, it has managed to maintain profitability after five consecutive years of losses.
This move by Air France-KLM could redefine the competitive landscape in Europe and further consolidate its presence in strategic Portuguese-speaking markets. The outcome of this process will be key for the future of TAP and for the balance of the airline sector in the region.
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