Photo: Lufthansa Group Lufthansa Group has welcomed the Portuguese government’s decision to select its offer in the privatization process for TAP Air Portugal, paving the way for the German airline group to acquire an initial minority stake in the Portuguese carrier.
The group has offered €1.025 billion for a 44.9% stake in TAP. The amount could rise to as much as €1.2 billion for a 49.9% stake, depending on the allocation of up to 5% of shares initially offered to employees and a ticking fee.
Lufthansa Group said it aims to support TAP’s growth while preserving the airline’s Portuguese identity. The proposed investment is also intended to strengthen Portugal’s air connectivity, particularly with North and Latin America, where TAP has an established network.
Carsten Spohr, chairman of the executive board and CEO of Deutsche Lufthansa AG, described TAP as a profitable airline, a long-standing Star Alliance partner and a leading carrier on South Atlantic routes. He said the Portuguese government’s decision had opened the way for the two groups to pursue a shared future.
Lufthansa also highlighted its longstanding presence in Portugal, where its airlines currently operate 353 weekly flights to six destinations. The group said its capacity in the country is 75% higher than in 2019, and more than 500 professionals currently work for its companies in Portugal.
That workforce is expected to grow. Lufthansa Technik is developing a new site in Santa Maria da Feira, near Porto, where construction officially began in June. The group expects the facility to help increase its direct employment in Portugal to more than 1,000 jobs by 2030.
The government’s selection of Lufthansa’s offer marks a step forward in the privatization process, but the transaction is not yet complete. Lufthansa Group is working with the Portuguese government and state holding company Parpública to finalize the transaction documents and expects the agreements to be signed shortly.
The acquisition will remain subject to approval by the relevant authorities. Lufthansa Group has also said that a majority stake could offer additional benefits to the parties involved, although its current offer concerns a minority shareholding.