Air France-KLM has submitted a binding offer to Portuguese state holding company Parpública to acquire a stake of between 44.9% and 49.9% in TAP Air Portugal, taking the partial privatization of Portugal’s flag carrier into a decisive phase. The offer was formally submitted on July 29, 2026.

The Franco-Dutch group emphasized that the proposal is not merely a financial bid, but a comprehensive long-term strategic plan covering passenger and cargo transport, the loyalty programme, aircraft maintenance and the development of Portugal’s aviation industry. Air France-KLM considers TAP one of the last major consolidation opportunities remaining in European aviation.

“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,” said Air France-KLM Group CEO Benjamin Smith.

According to Smith, the group has spent the past three years working with Portuguese stakeholders to prepare the strongest possible proposal. The objective is to secure TAP’s long-term growth, not only in Lisbon but also in Porto and other Portuguese cities, while placing the airline within a strong international group.

The bid is also supported by Delta Air Lines, Air France-KLM’s transatlantic joint venture partner and one of the group’s shareholders. Delta believes the investment would expand transatlantic travel options and further strengthen Portugal’s role as both a business and leisure destination.

“We’re looking forward to seeing Air France-KLM and TAP grow across the Atlantic for years to come, providing more choice, better connectivity and a stronger network for travellers,” said Delta Air Lines CEO Ed Bastian.

If the offer is accepted, Lisbon would become Air France-KLM’s unique Southern European hub. TAP’s strong presence on routes to Brazil would complement the group’s existing network and its long-standing partnership with Brazilian carrier GOL, which provides access to an extensive domestic network across Brazil.

Air France-KLM is also counting on stronger connectivity to other markets in North and South America, as well as Africa. TAP would join the group’s global commercial network, which includes Air France, KLM and Transavia, giving it access to a larger customer base, wider sales channels and additional joint business opportunities.

Following the possible selection of Air France-KLM, Delta would begin negotiations with TAP on a strategic commercial agreement covering, among other areas, reciprocal codeshare services and loyalty programme benefits. Delta would also share best practices in customer experience, while closer cooperation would create a broader and stronger transatlantic network.

A major element of the offer concerns the development of aircraft maintenance, repair and overhaul activities in Portugal. Air France-KLM plans to work with TAP Maintenance & Engineering, its partner for more than 20 years, to open new MRO facilities dedicated to servicing the latest generation of aircraft and engines.

These investments are expected to promote technological development and create highly skilled jobs in Portugal. TAP would also gain access to new business opportunities and Air France-KLM technologies, including digital solutions and the use of artificial intelligence in maintenance operations.

Air France Industries KLM Engineering & Maintenance is one of the world’s leading MRO providers, supporting more than 3,000 aircraft operated by over 200 customers. The group believes that combining these capabilities with TAP’s technical division could further strengthen Portugal’s position as a European aircraft maintenance centre.

The offer provides for the preservation of TAP’s key assets, including its management, brand, route network, headquarters in Portugal and main hub in Lisbon. Air France-KLM says the proposal fully complies with the requirements set by the Portuguese government and promises cooperation with employees and other stakeholders through social dialogue.

One of the possible consequences of the transaction would concern TAP’s membership in a global airline alliance. TAP is currently a member of Star Alliance, while Air France and KLM are founding members of SkyTeam. Should TAP join Air France-KLM, it would be reasonable to expect the airline to follow the example of SAS by leaving Star Alliance and joining SkyTeam, although no such decision has yet been officially confirmed.

This would leave Star Alliance without a home carrier on the Iberian Peninsula, which comprises Spain and Portugal. Iberia, Spain’s flag carrier, is a member of oneworld, a position also linked to its ownership by International Airlines Group, which includes British Airways, one of the alliance’s founding members. A possible TAP switch would therefore represent a significant realignment of power among the world’s three largest airline alliances in southwestern Europe.

Air France-KLM’s main competitor in the privatization process remains Lufthansa Group. The Franco-Dutch group has openly warned that withdrawing from the process would allow Lufthansa to gain a stronger position on routes to South America and further expand the influence of Star Alliance.

Portugal is expected to announce the next steps by the end of the summer. The government may select either Air France-KLM or Lufthansa Group outright, invite both parties into a non-exclusive negotiation phase or request revised bids. Air France-KLM expects a final decision to be made during the autumn.

Once an investor has been selected, the transaction would be subject to regulatory review by European competition authorities. The entire process could take at least 18 months, meaning TAP could join the selected group in early 2028 at the earliest.

Air France-KLM also considers TAP’s fleet an important advantage, with new-generation aircraft accounting for approximately 58% of its operational fleet. This structure fits well with the group’s objectives of modernization, improved passenger experience and lower emissions, while both sides identify decarbonization as a major strategic priority.

Air France-KLM already has a strong presence in the Portuguese market. During the 2026 summer season, Air France, KLM and Transavia are offering up to 346 weekly flights on 29 routes linking Portugal with France, the Netherlands and Belgium, serving Lisbon, Porto, Faro, Funchal and Ponta Delgada. Compared with 2019, Air France and KLM have increased their capacity in Portugal by 44%, while an additional 11% increase was announced for summer 2026 alone.

In 2025, the group carried 103 million passengers with a fleet of more than 580 aircraft, generated €33 billion in revenue and employed around 80,000 people. The possible investment in TAP forms part of Air France-KLM’s broader consolidation strategy, which also includes the process of acquiring a majority stake in Scandinavian carrier SAS.