Lufthansa takes stake in Portuguese airline TAP
German group buys 44.9 per cent of TAP, beating Air France-KLM.
Listen to this article
There is no audio version yet. Request one and an AI voice will read the article aloud.
Read by an AI voice.
.jpg){kind=link}
Lufthansa is buying a 44.9 per cent stake in Portuguese airline TAP Air Portugal. The Portuguese government values the transaction at €1.2 billion; Air France-KLM was the only remaining competitor.
Portuguese Prime Minister Luís Montenegro announced the decision on Wednesday. The state will provisionally remain TAP’s largest shareholder. In addition, 5 per cent of the shares will be reserved for the airline’s more than 9,000 employees.
The deal has not yet been definitively concluded. European competition authorities must first assess the transaction. According to AP, the Portuguese government says full privatisation of TAP could be completed by 2028, but the sale of the first minority stake is the most important step towards that.
For Lufthansa, TAP is attractive because of Lisbon’s position as a transfer hub and its connections with South America, Africa and North America. TAP says it carried 16.7 million passengers last year. The airline has more than ninety aircraft and flies to over ninety destinations.
Interest in TAP was therefore not only about the Portuguese domestic market. The routes to Brazil and other Portuguese-speaking countries are particularly strategically important. Lufthansa can connect those networks with its existing European brands and airports, while TAP retains access to a large number of international connections.
In September, Air France-KLM had publicly confirmed that it had submitted a final bid for up to 49.9 per cent of TAP. The French-Dutch group said at the time that it wanted to develop a southern hub for its network with Lisbon. The Portuguese government ultimately chose Lufthansa, which according to AP made a higher or more attractive bid.
Travellers and staff now face a period of uncertainty over the precise consequences. In the sale, the Portuguese state also set requirements concerning connectivity, employment, maintenance and the development of airport operations. The European review could also result in conditions affecting competition on certain routes.
According to the company accounts cited by AP, TAP recorded a net profit of €4.1 million last year. That relatively limited result underlines that the airline’s value is determined mainly by its network, slots and strategic position, rather than solely by its direct profitability.
One story, several perspectives
What is established
- According to the announcement, Lufthansa is acquiring a 44.9 per cent stake in TAP.
- The Portuguese state will provisionally remain a shareholder, and 5 per cent will be reserved for employees.
- European regulators still have to assess the deal.
- Air France-KLM had also submitted a final bid.
Left
Arguments A strategic airline must protect public objectives such as accessibility, employment conditions and regional connections. Privatisation is defensible only if the state can impose firm conditions.
Values Public accessibility, employee protection and democratic oversight.
Consequences Strong conditions can prevent routes and jobs from disappearing, but may reduce the attractiveness to investors.
Centre
Arguments A minority sale can give TAP access to capital, scale and an international network, provided the government maintains oversight and European competition rules are followed.
Values Continuity, efficiency and careful oversight.
Consequences The airline could become financially more stable while the Portuguese state retains influence over public interests.
Right
Arguments A private strategic owner can invest more quickly and strengthen TAP in international competition. The government must prevent itself from once again carrying structural financial risk.
Values Market discipline, entrepreneurship and limiting public spending.
Consequences Greater commercial freedom could generate growth, but less profitable routes could come under pressure.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The reporting uses a current AP source and official documents concerning the privatisation process. The text makes clear which elements still depend on European approval.
- confirmed Lufthansa is buying 44.9 per cent of TAP Air Portugal. — Announced by the Portuguese prime minister and reported by AP. source
- confirmed The Portuguese government values the deal at €1.2 billion. — Reported by AP. source
- confirmed Air France-KLM was the only remaining competitor. — Reported by AP; Air France-KLM had previously confirmed a final bid itself. source
- confirmed The deal still has to be approved by European regulators. — Reported by AP. source
- confirmed TAP carried 16.7 million passengers last year. — Figure from company information cited by AP. source
Editor's note
The choice of Lufthansa, the 44.9 per cent stake, the valuation and the need for European approval have been confirmed. The precise content of the bid and possible competition conditions have not yet been made public.Sources
- Lufthansa to buy large share of TAP Air Portugal — Associated Press
- TAP’s privatisation moves to final phase with two bidders — Portugese regering
- Air France-KLM submits its final offer for an up to 49.9% stake in TAP Air Portugal — Air France-KLM
More on this in Dutch media
- NOS — „tap air portugal”
- Het Parool — „tap air portugal”
- de Volkskrant — „tap air portugal”