AviationNews – Portugal’s government has formally picked the Lufthansa Group to acquire a 44.9 percent stake in TAP Air Portugal, ending a heated bidding war with Franco-Dutch competitor Air France-KLM. The strategic alliance secures a major European transatlantic gateway for the German aviation group while opening a new chapter in the restructuring of the Portuguese national carrier.
The official decision arrived during an extraordinary cabinet session in Lisbon following a rigorous evaluation of final binding proposals. Under the approved transaction, which values TAP at approximately 2.55 billion euros, Lufthansa secures 44.9 percent of the airline’s equity, five percent remains reserved for company employees, and the Portuguese state retains majority ownership at 50.1 percent. International Airlines Group bowed out during early stages, leaving Lufthansa and Air France-KLM in direct competition. Lufthansa ultimately prevailed by tabling an all-cash offer and presenting stronger financial stability, outbidding Air France-KLM’s cash-and-shares alternative by around 16 percent.
Operationally, the acquisition bridges Lufthansa’s primary network gap in the South Atlantic. TAP commands more than a quarter of total capacity between Europe and Brazil and maintains an extensive route portfolio into Lusophone Africa from Humberto Delgado Airport in Lisbon. Under the new operational arrangement, Lisbon will develop as a critical southwestern hub, while preserving Star Alliance continuity. The industrial plan also earmarks resources for fleet modernisations across TAP’s Airbus A320neo and A330neo jets and coordinates immediate capacity expansions to relieve ground congestion at Lisbon’s airport.
“This is the best choice for the future of the company and the one that best protects the national interest,” declared Portuguese Prime Minister Luís Montenegro following the cabinet decision. “Lufthansa’s commitment delivers a solid financial framework that guarantees the expansion of TAP’s fleet, the preservation of key flight corridors, and sustainable job protection for thousands of aviation professionals.”
Looking ahead, the tie-up must secure antitrust clearance from European Union competition regulators before full implementation moves forward in 2027. European aviation regulators are expected to scrutinise slot holdings at Lisbon and German hubs, obliging Lufthansa to demonstrate how route pricing and customer choice will stay competitive. Over the next twelve months, stakeholders must finalize governance transition teams, harmonize passenger loyalty structures, and lay the logistical foundation for an eventual full privatisation slated for 2028.
The selection cements Lufthansa’s footprint across Latin American routes and concludes a fiercely contested airline auction. With the Portuguese state retaining temporary control alongside Lufthansa’s commercial muscle, TAP stands well-positioned to overcome domestic airport bottlenecks and expand its international presence.
