Portugal chooses Lufthansa for stake in TAP
The Portuguese government is selling 44.9 per cent of the airline, with a possible increase to 49.9 per cent.
Follow-up to: Lufthansa takes stake in Portuguese airline TAP Wednesday, 14 October 2026, 14:59
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Portugal has formally chosen Lufthansa as TAP Air Portugal’s strategic partner. Air France-KLM lost the contest for the stake; the transaction still requires approval from the relevant regulators.
The Portuguese cabinet decided on Wednesday to sell 44.9 per cent of TAP to Lufthansa. Up to a further 5 per cent may be added if employees do not buy their reserved shares. The total value of the transaction could reach €1,201 billion, according to the Portuguese government.
The decision completes an earlier stage of the privatisation. In our previous article, we already reported that Lufthansa was in contention as a buyer. The new development is that the Portuguese government has formally confirmed its choice and definitively selected it over Air France-KLM.
The government says Lufthansa submitted the financially strongest proposal and offered less uncertainty. According to Lisbon, its bid for the initial stake was up to 16 per cent higher than Air France-KLM’s. That comparison is based on the Portuguese government’s assessment; no independent valuation of the bids has been made public.
Portugal wants to protect strategic interests in the sale. The TAP brand, its base in Lisbon and connections with the Portuguese islands must be retained. The government also cites fleet growth, strengthening Porto airport and improved connections with Latin America as elements of the plan.
Lufthansa says the group wants to allow TAP to grow further within the existing Star Alliance network. The German airline group highlights the connections between Portugal, Europe, North America and Latin America in particular. The company also says it wants to invest in maintenance and engineering in Portugal.
The sale is therefore not yet fully complete. Lufthansa expects to sign the transaction documents shortly, but the acquisition of the stake remains subject to approval by the relevant authorities. According to Portugal, any sale of a majority stake will only follow in a separate second phase, for which 2028 is being cited as a possible completion date.
One story, several perspectives
What is established
- The Portuguese cabinet has selected Lufthansa to buy 44.9 per cent of TAP.
- Employees can collectively acquire up to 5 per cent.
- The transaction has an announced value of up to €1,201 billion and still requires approval.
- Air France-KLM was the other finalist.
- Portugal will remain a shareholder for the time being.
Left
Arguments A national airline is more than a company: connections with islands, employment and public accessibility should carry significant weight. The state should therefore impose strict conditions on jobs, routes and control.
Values Public interests, regional equality and protection of workers.
Consequences More conditions could delay the sale or reduce the proceeds, but would lessen the risk of profitable routes disappearing.
Centre
Arguments A partial sale can add capital and scale, provided Portugal protects the strategic connections contractually and awaits competition and state-aid reviews.
Values Institutional control, continuity and a businesslike assessment.
Consequences The approach could allow growth without immediately giving up all public influence, but it requires long-term oversight.
Right
Arguments An airline should above all be able to operate efficiently and competitively. Lufthansa brings scale, capital and an international network; the state should not interfere too much in operations.
Values Market forces, lower public risks and entrepreneurship.
Consequences Faster commercial growth is possible, but less profitable routes could come under pressure if public guarantees remain limited.
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 key facts have been confirmed by the Portuguese government and Lufthansa. Final completion and any sale of a majority stake remain uncertain.
- confirmed Portugal has chosen Lufthansa to buy 44.9 per cent of TAP, with up to 5 per cent extra for employees. — Mentioned in the decision of the Portuguese cabinet. source
- confirmed The total value of the initial operation could reach €1,201 billion. — Amount cited by the Portuguese government. source
- confirmed Air France-KLM lost the selection process for the stake. — The Portuguese government names Air France-KLM as the other finalist. source
- confirmed The transaction still requires approval from the relevant authorities. — Lufthansa states that completion is subject to approval. source
- confirmed Any sale of a majority stake will follow in a separate second phase. — The Portuguese government describes a possible subsequent phase. source
Editor's note
The formal choice, the percentage and the value come from the Portuguese government’s statement. The transaction remains subject to approval; the comparison with Air France-KLM’s bid is a claim by the Portuguese government.Sources
- Governo seleciona a Lufthansa para aquisição de até 49,9% do capital social da TAP — Portugese regering
- Lufthansa Group welcomes selection of its offer in TAP Air Portugal privatization process — Lufthansa Group
- Lufthansa to buy 44.9% of TAP Air Portugal in €1.2B deal — Associated Press
The story so far
- Wednesday, 14 October 2026, 14:59 Lufthansa takes stake in Portuguese airline TAP
- Wednesday, 14 October 2026, 21:28 Portugal chooses Lufthansa for stake in TAP (this article)