The tender for the partial privatization of Portugal’s national carrier, TAP Air Portugal, entered a decisive phase in early April, when two major European airline groups, Lufthansa Group and Air France-KLM Group, officially submitted non-binding offers to acquire a minority stake in the company. The deadline for submissions expired on April 2, 2026, marking the first concrete step in a process that could reshape the European aviation landscape.
The Portuguese government plans to sell a 44.9 percent stake in the airline, with an additional five percent reserved for employees. The privatization process was formally launched in September 2025, and by November the same year three groups had expressed interest: Air France-KLM, Lufthansa, and International Airlines Group (IAG). As the submission deadline approached, it became increasingly clear that the tender could turn into a two-horse race, as IAG is reportedly considering withdrawing due to a mismatch between the minority stake on offer and its long-term strategic goals.
Both submitted offers are currently non-binding but must include a range of key elements, from financial parameters and valuation to industrial plans, expected synergies, and guarantees regarding TAP’s continued status as a European Union carrier. Portugal’s Minister of Infrastructure, Miguel Pinto Luz, previously indicated that a final decision on the preferred partner is expected during the summer.
Although both groups are targeting the same stake, their visions for the future of the Portuguese airline differ significantly. Air France-KLM sees Lisbon as a unique Southern European hub within its network, positioning TAP at the center of connectivity between Europe, South America, and other markets. Chief Executive Officer Benjamin Smith emphasized that the group views TAP as a natural fit within its existing multi-hub strategy, with plans to strengthen operations not only in Lisbon but also in other Portuguese cities such as Porto.
Lufthansa, on the other hand, emphasizes complementarity rather than integration into existing hubs. Chief Strategy Officer Tamur Goudarzi Pour stated that a minority stake does not limit the potential for operational and commercial benefits, while CEO Carsten Spohr described TAP as a “perfect fit” for Lufthansa’s expansion strategy toward Brazil and Latin America. The group stresses that cooperation would enable the development of Lisbon and Porto without redirecting traffic to Frankfurt or other established hubs.
Differences are also evident in the broader alliance context. TAP is currently a member of Star Alliance, alongside Lufthansa, while Air France-KLM operates within SkyTeam. A potential win for the Franco-Dutch group would likely result in a change of alliance, with implications for existing codeshare agreements and loyalty programs.
Beyond strategic direction, Lufthansa has already outlined concrete investment plans, including the modernization of the passenger experience through advanced connectivity solutions such as Starlink, the construction of a Lufthansa Technik component maintenance center near Porto, and the potential launch of a pilot training school in cooperation with the Portuguese Air Force.
The entire privatization process follows TAP’s re-nationalization in 2020, aimed at stabilizing operations impacted by the pandemic. Today, it remains one of the few state-owned airlines in Europe, and its sale is intended to ensure the carrier’s long-term sustainability and development.
If IAG’s withdrawal is confirmed, the race for TAP will become a direct contest between two major European groups with fundamentally different approaches: one seeking strong integration into an existing network, and the other emphasizing autonomous development through strategic partnership. The final decision, expected this summer, will have long-term implications not only for the Portuguese carrier but also for the balance of power in European aviation.
