April 2 (Reuters) - Franco-Dutch airline group Air France-KLM said on Thursday it had submitted a non-binding offer to buy a minority stake in TAP Air Portugal, as the Portuguese government moves
Lufthansa, Air France-KLM vie for Portugal's TAP stake, IAG bows out
Airlines Compete for TAP Stake Amid Privatisation Efforts
By Sergio Goncalves and Klaus Lauer
BERLIN/LISBON, April 2 (Reuters) - Air France-KLM and Germany's Lufthansa were the only airlines to submit non‑binding bids for a minority stake in Portugal's flag carrier TAP on Thursday, while British Airways owner IAG opted out despite initial interest.
Portugal re-launched the long-delayed privatisation of TAP in July, aiming to sell a 44.9% stake to a strategic airline partner able to expand the carrier's global reach and competitiveness, with a further 5% earmarked for TAP employees.
Air France-KLM and Lufthansa Submit Bids
A Lufthansa spokesperson told Reuters the airline had submitted an offer, following an earlier move by Franco-Dutch group Air France-KLM.
IAG Withdraws from TAP Stake Acquisition
IAG, which had also shown initial interest in TAP, said in a statement that after "careful consideration" it had decided not to proceed with the acquisition of the minority stake as it prioritises growth opportunities within the existing group.
Requirements and Details of the Offers
Strategic Plans and Offer Conditions
OFFERS MUST INCLUDE STRATEGIC PLAN
The non‑binding offers, which had to be submitted by 1600 GMT on Thursday, had to include a proposed price for the TAP stake, along with industrial and strategic plans and expected benefits.
Neither Air France-KLM nor Lufthansa disclosed the price offered, and the German airline issued no public statement.
Statements from Airline Executives
"Our ambition is to strengthen operations in Lisbon while developing connectivity elsewhere in Portugal, including Porto," Air France-KLM CEO Benjamin Smith said in a statement earlier.
TAP's Strategic Importance and Future Prospects
Key Routes and Government Intentions
TAP's key appeal lies in its prime and lucrative slots connecting its Lisbon hub with Brazil, Portuguese-speaking African countries and the United States, routes the Portuguese government intends to preserve and expand.
TAP a 'Natural Fit' for Air France-KLM
TAP A 'NATURAL FIT' FOR AIR FRANCE-KLM
Smith said that "TAP is a natural fit" within Air France-KLM's multi-hub strategy, with Lisbon becoming its sole southern European hub, linking the Americas and Africa.
In November, Lufthansa CEO Carsten Spohr said his group would be TAP's "best partner," and a tie-up would bolster Lisbon's role as an Atlantic hub linking the Americas and Africa.
Next Steps in the Privatisation Process
Government's Role and Timeline
Under the privatisation decree, the government may later sell its remaining 50.1% to the buyer of the minority stake now on offer.
The next step is for the state holding company Parpublica, which handles the bidding, to prepare within 30 days a report on each proposal's merits for the government. It will then select the most suitable non-binding offers and invite those bidders to submit binding proposals within 90 days.
The privatisation is expected to conclude in the second half of 2026.
(Reporting by Sergio Goncalves, Klaus Lauer and Gianluca Lo Nostro; Editing by Milla Nissi-Prussak, Tomasz Janowski, Bernadette Baum and Jane Merriman)
