Lufthansa Joins Air France-KLM in Bidding for TAP Air Portugal; IAG Withdraws from Process
The race for Portugal’s flag carrier has entered a decisive phase. Lufthansa Group and Air France-KLM formalized their non-binding offers this Thursday to acquire a stake in TAP Air Portugal, while International Airlines Group (IAG)—the parent company of British Airways and Iberia—has decided to withdraw from the privatization process.
Details of the Privatization Process
The Portuguese Government reactivated the airline’s privatization process in July, following several delays. The primary objective of the authorities is the sale of a 44.9% stake to an industrial partner capable of boosting the company’s competitiveness and global reach.
Additionally, 5% of the company’s capital has been reserved for acquisition by the airline’s employees. According to government guidelines, proposals submitted last Thursday before 16:00 had to meet specific requirements:
- Economic Proposal: A defined price for the stake in the airline.
- Industrial and Strategic Plan: A detailed project for the company’s development.
- Expected Benefits: An analysis of the positive impact of the integration on Portuguese aviation.
Movements of the European Giants
The competitive landscape has been redefined following the deadline for receiving bids.
Lufthansa and Air France-KLM in the Running
A Lufthansa spokesperson confirmed to Reuters that the German group submitted its offer following the initial move made by the Franco-Dutch conglomerate Air France-KLM. To date, neither organization has disclosed the financial amount of their proposals, and the German carrier has opted not to issue detailed public statements regarding the terms of its bid.
The Withdrawal of IAG
Despite having shown initial interest in the Portuguese asset, IAG issued an official statement announcing its decision not to proceed with the acquisition. The group justified its withdrawal after “careful consideration,” noting that it is currently prioritizing growth opportunities within its existing brands.
With the non-binding offers on the table, the process now enters a technical evaluation phase. The Portuguese government will analyze the industrial and strategic plans presented by Lufthansa and Air France-KLM to determine which of the two consortia offers the best guarantees to strengthen TAP’s position in the international market, ensuring the airline remains a driver of connectivity for the country.
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