Lufthansa Group has welcomed the Portuguese government’s decision to select its offer in the privatization process of national carrier TAP Air Portugal. The German aviation group has offered €1.025 billion for a 44.9% ownership stake, while the total transaction value could reach €1.2 billion if the stake is increased to 49.9%.

The selection of Lufthansa’s offer represents an important step in the privatization of Portugal’s national airline, as well as a continuation of Lufthansa Group’s international expansion strategy, which has seen the group expand its portfolio of European airlines in recent years. TAP’s strategic importance stems particularly from its strong presence in the transatlantic market, primarily on routes connecting Europe with Brazil and other destinations in Latin America.

According to the information released, Lufthansa Group initially intends to acquire a minority stake while preserving TAP’s national identity and supporting the further development of its route network. Particular emphasis will be placed on strengthening Portugal’s international connectivity, especially with North and Latin America, where TAP already operates an extensive network of destinations.

Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, described TAP as a strong and profitable airline, a long-standing Star Alliance partner, and one of the leading carriers on South Atlantic routes.

“TAP Air Portugal is a strong and profitable airline, our long-standing partner in Star Alliance and internationally successful as a leading carrier on South Atlantic routes. It is known for its outstanding employees and has a compelling business model. With today’s decision, the Portuguese government has paved the way for TAP Air Portugal to continue this success story together with Lufthansa Group. At the same time, this allows us to consistently pursue our internationalization strategy and sustainably strengthen our position in the South Atlantic market,” Spohr stated.

He added that Lufthansa Group has maintained close business relations with Portugal for decades, investing in the country’s economy and creating highly skilled jobs, while expressing his expectation of continued constructive cooperation with the Portuguese government.

The financial structure of the offer provides for an initial acquisition of 44.9% of the shares for €1.025 billion. As an additional 5% of the shares were initially reserved for TAP employees, Lufthansa Group has retained the option of increasing its ownership stake to 49.9%. In that case, including a time-related adjustment fee associated with the period until completion of the transaction, the investment could rise to approximately €1.2 billion.

Lufthansa Group has also welcomed the Portuguese government’s announcement that it intends to initiate the process for the full privatization of TAP Air Portugal. In its statement, the group emphasized that previous acquisitions have demonstrated how a majority ownership stake can generate additional benefits for all parties involved. This clearly signals the German group’s interest in increasing its ownership stake over the longer term and potentially gaining majority control of the Portuguese airline.

Lufthansa Group has maintained a presence in Portugal for more than 70 years. Airlines within the group currently operate 353 weekly flights to six Portuguese destinations, with available capacity having increased by 75% compared with 2019. More than 500 skilled professionals are currently employed by Lufthansa Group companies in Portugal.

Further expansion is planned through the construction of a new Lufthansa Technik facility in Santa Maria da Feira, near Porto, where construction began in June. Thanks to this investment, Lufthansa Group expects the number of direct jobs in Portugal to exceed 1,000 by 2030.

For Lufthansa Group, acquiring a stake in TAP would also have broader strategic implications. The Portuguese airline holds a strong position in the market between Europe and South America, particularly Brazil, which represents one of its most important markets. By adding TAP to its ownership portfolio, Lufthansa Group would further strengthen its presence in this market and gain opportunities for improved coordination of route networks between its existing European hubs and Portuguese airports.

Another important factor is that TAP and Lufthansa Group airlines are already members of Star Alliance, providing an established foundation for commercial and operational cooperation and facilitating potentially deeper integration.

Lufthansa Group is currently working with the Portuguese government and the state holding company Parpública to finalize the transaction documentation. The agreements are expected to be signed shortly, while completion of the acquisition will remain subject to approval by the relevant regulatory authorities.

If the transaction is successfully completed, TAP Air Portugal would become another European airline within Lufthansa Group’s ownership portfolio, further consolidating its position among the largest aviation groups in the European and global markets.