Portugal asks Air France-KLM, Lufthansa for improved offers in TAP sale

Portugal Requests Improved Bids from Air France-KLM, Lufthansa to Buy TAP Stake

Final Negotiations for TAP Stake Acquisition

By Sergio Goncalves

LISBON, Sept 4 (Reuters) - Portugal's government launched a final round of negotiations for a minority stake in flag carrier TAP on Friday by asking Air France-KLM and Lufthansa to submit improved offers.

Both European airline groups submitted undisclosed binding offers in July to buy a 44.9% stake in TAP and become its strategic partner.

Government's Assessment of Initial Offers

But Cabinet Minister Antonio Leitao Amaro told a press briefing on Friday the government had judged the offers from both groups too close for it to pick one.

Leitao Amaro said the two binding offers "differed in their content, but were assessed as broadly similar overall".

Next Steps in the Negotiation Process

"That is why we decided to launch a final round of negotiations lasting a few weeks, during which we expect the bidders to improve their offers," he told reporters after a cabinet meeting.

Air France-KLM and Lufthansa's Responses

Air France-KLM's Position

TAP RETAINS ITS APPEAL 

In a statement, Air France-KLM said its interest in TAP remained unaltered.

"We look forward to the next phase of the process," it said, adding that its latest offer includes a strategic plan covering all parts of the business, including passenger transport, cargo and maintenance, and that its joint-venture partner Delta Air Lines supports and is aligned with this bid. 

Lufthansa's Position

Lufthansa said it was looking forward to "continuing the process constructively in the coming weeks" and that it sought to create a long-term partnership with TAP and Portugal.

Background on TAP Privatisation

Privatisation Timeline and Structure

Portugal revived the long-delayed privatisation of TAP in July 2025, seeking a strategic airline investor capable of expanding the carrier's international reach and competitiveness.

A further 5% stake has been set aside for employees, while the winning bidder would have the option to acquire any shares not taken up by staff.

TAP's Strategic Value

TAP's main attraction is that it has valuable slots linking its Lisbon hub with Brazil, Portuguese-speaking African countries and the United States, routes important for Portugal's diaspora, tourism and investment.

Requirements for Future Strategic Partner

The government has required TAP's future strategic partner to support growth across Portugal's airport network, strengthening operations and connectivity not only in Lisbon but also in Porto, Faro, the Azores and Madeira.

Potential for Further Stake Sale

Under the privatisation decree, the government may later sell its remaining 50.1% stake to the strategic investor. 

(Reporting by Sergio Goncalves, additional reporting by Joanna Plucinska and Klaus Lauer; editing by Andrei Khalip and Barbara Lewis)