Portugal TAP Air. Photo: Radu Bercan / Shutterstock The race for a stake in TAP Air Portugal has officially begun, with two of Europe's largest airline groups, Lufthansa Group and Air France-KLM, confirming they have submitted binding offers to acquire a minority share in Portugal's flag carrier.
The Portuguese government is seeking to sell between 44.9% and 49.9% of TAP Air Portugal as part of its long-awaited privatization process, while retaining a controlling interest in the airline.
Lufthansa announced it had submitted its bid to Parpública, Portugal's state-owned investment company, describing the move as the "next logical step" in its long-standing relationship with the country. Air France-KLM separately confirmed it had also submitted a binding offer, backed by a comprehensive strategic plan aimed at expanding TAP's operations and strengthening Portugal's aviation sector.
The competing bids set the stage for one of the most significant airline acquisition battles in Europe in recent years.
Photo: Lufthansa GroupLufthansa Group CEO Carsten Spohr said the company sees Lisbon as a strategic hub within its network, particularly for flights across the South Atlantic. The German airline group already owns stakes in SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways, arguing that its track record demonstrates its ability to preserve national airline identities while delivering long-term growth.
"The Lufthansa Group stands for a long-standing, trusted, and strategic partnership with Portugal," Spohr said.
The airline group has operated in Portugal for more than 70 years and currently offers 353 weekly flights to and from the country. It is also investing in a new Lufthansa Technik facility near Porto that is expected to create more than 1,000 jobs by the end of the decade.
Photo: AIR FRANCE KLMMeanwhile, Air France-KLM's proposal focuses heavily on positioning Lisbon as its primary Southern European hub, leveraging TAP's extensive network to Brazil and other destinations in Africa and the Americas.
Air France-KLM CEO Benjamin Smith described the offer as more than simply a financial investment.
"What we have submitted today is not just a proposed price for an airline. It is a strategic, extensive, and comprehensive long-term plan for TAP and for Portugal as a whole," Smith said.
The Franco-Dutch airline group said it intends to expand maintenance, repair and overhaul (MRO) activities in Portugal alongside TAP Maintenance & Engineering, creating highly skilled jobs and introducing new technologies, including artificial intelligence applications.
The bid also has the backing of Delta Air Lines, Air France-KLM's transatlantic joint venture partner. Delta CEO Ed Bastian said the investment would enhance travel options between Portugal and North America while strengthening the country's position as both a business and leisure destination.
British Airways parent International Airlines Group (IAG) had previously expressed interest in TAP but did not submit an offer, leaving Lufthansa and Air France-KLM as the two confirmed contenders.
Whichever airline group prevails, the outcome is expected to reshape Portugal's aviation landscape and determine the future of one of Europe's most strategically positioned carriers.