Portugal Receives Assessment of Air France-KLM, Lufthansa Bids for TAP Stake

Portugal's government has received a formal assessment of competing bids from Air France-KLM and Deutsche Lufthansa AG for a minority stake in national carrier TAP Air Portugal. The development marks a critical step forward in the airline's privatization process, which the government aims to conclude this year.

Government Reviews Bids

The Finance Ministry confirmed on Tuesday it had received the evaluation from state holding company Parpublica, according to a statement. The government will now analyze the document, which assesses the binding offers submitted in July, before announcing its position and advancing the sale process.

The ministry did not disclose any details from the assessment or the financial terms of the proposals from either airline group. The government restarted the privatization process for TAP in July 2025, seeking a strategic investor for a 44.9% stake.

Path to a Decision

Following its review, the government has several options. It can select a preferred bidder to move forward with or initiate a formal negotiation phase, which could allow one or both suitors to submit improved final offers.

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Officials have emphasized that the decision will not be based solely on price. The winning bid will also be judged on its strategic plan to expand TAP's international presence and enhance its long-term competitiveness.

Strategic Stakes for European Giants

TAP's primary appeal to investors is its valuable route network and landing slots at its Lisbon hub, which provide strong connections to Brazil, Portuguese-speaking countries in Africa, and the United States. The two bidders have presented distinct strategic visions for the carrier:

• Air France-KLM has stated it would make Lisbon its exclusive hub for southern Europe if its bid is successful.
• Lufthansa plans to strengthen Lisbon's role as a transatlantic hub, pointing to its track record of integrating carriers such as SWISS, Austrian Airlines, and ITA Airways.

While the value of the actual bids remains private, analysts at Bernstein have previously estimated the 44.9% stake could be worth approximately €700 million ($798 million), suggesting a total valuation for TAP of around €1.5 billion.