Finance
Portugal Asks Air France‑KLM, Lufthansa to Submit Binding Bids in Tight Race for Tap
Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min readLast updated: April 23, 2026
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Portugal has invited Air France‑KLM and Lufthansa to submit binding bids by end‑July for a 44.9% minority stake in TAP, following closely matched non‑binding offers; the government anticipates completing the sale by early September amid strategic hub value concerns and fuel‑supply risks.
Portugal Requests Final Bids from Air France-KLM, Lufthansa for TAP Privatisation
Portugal Seeks Strategic Partner for TAP Amid Tight Competition
By Sergio Goncalves
Privatisation Process and Timeline
LISBON, April 23 (Reuters) - Portugal's government on Thursday asked Air France-KLM and Germany's Lufthansa to submit binding bids for a minority stake in flag carrier TAP, setting up a tight contest between the two European airline groups after closely matched initial offers, the only two it had received.
Revival of TAP Privatisation
Portugal revived TAP's long-delayed privatisation in July, aiming to sell a 44.9% stake to a strategic airline partner to strengthen the carrier's global network and competitiveness, while reserving a further 5% for employees.
Next Steps in the Bidding Process
The government will send out formal invitations to the two airlines by the end of April, and they will have to submit binding bids by the end of July. The privatization is expected to conclude by early September.
Details of the Bids and Government Perspective
Non-Binding Offers and Strategic Plans
Air France-KLM and Lufthansa submitted non-binding offers earlier this month, including a proposed price for the TAP stake, along with industrial and strategic plans and expected synergies. No details were revealed.
Government's Assessment of the Offers
Infrastructure Minister Miguel Pinto Luz said the two bids were "largely equivalent and very ambitious" in strategic, industrial and financial terms, leaving the government comfortable with the company's valuation.
Financial Valuation as a Decisive Factor
"With proposals that close, meeting all dimensions, the financial valuation of TAP may naturally end up playing a decisive role. We will wait for the binding offers," Pinto Luz said at a news conference.
TAP's Strategic Importance and External Factors
Key Appeal of TAP's Network
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.
Impact of Middle East Crisis on the Process
Pinto Luz said the government was "closely monitoring the crisis" in the Middle East following the closure of the Strait of Hormuz, which has sparked concerns over jet fuel shortages at European airlines and led to flight cancellations, but he believed it would be resolved "sooner rather than later".
(Reporting by Sergio Goncalves; editing by Andrei Khalip)
Key Takeaways
- •Portugal rebooted TAP’s privatisation in July 2025, offering 44.9% to a strategic airline and 5% to employees, with the state retaining majority control (macedovitorino.com).
- •Air France‑KLM and Lufthansa submitted nearly equivalent non‑binding bids by the April 2, 2026 deadline, while IAG withdrew from the process (centreforaviation.com).
- •The government will issue formal invitations by end‑April; binding offers are due by end‑July, with the privatisation expected to close by early September (bloomberg.com).
- •TAP’s network, especially its Lisbon hub linking Europe with Brazil, Portuguese‑speaking Africa, and the U.S., underpins its appeal (euronews.com).
- •The government is monitoring the Middle East fuel‑supply disruption due to the Strait of Hormuz closure, though expects resolution soon (cincodias.elpais.com).
References
- M A C E D O · · V I T O R I N OPORTUGUESE INSIGHTS
- Air France-KLM and Lufthansa submit non-binding offers for stake in TAP Air Portugal | CAPA
- Air France-KLM, Lufthansa Invited to Submit Bids for Portugal's TAP - Bloomberg
- Air France-KLM in the race for Portugal's TAP with offer for minority stake | Euronews
- Los costes del combustible complican el aterrizaje de TAP
Frequently Asked Questions about Portugal asks Air France‑KLM, Lufthansa to submit binding bids in tight race for TAP
1Why is Portugal privatising TAP?
Portugal aims to strengthen TAP's global network and competitiveness by selling a minority stake to a strategic airline partner.
2Which companies are bidding for TAP's privatisation?
Air France-KLM and Lufthansa are the two airline groups invited to submit binding bids for TAP.
3What is the timeline for TAP's privatisation process?
Binding bids are due by the end of July, and the privatisation is expected to conclude by early September.
4What makes TAP attractive to bidders?
TAP's prime flight slots connecting Lisbon with Brazil, Portuguese-speaking Africa, and the US are key attractions.
5How is the Middle East crisis affecting TAP's privatisation?
The Portuguese government is monitoring the crisis due to potential jet fuel shortages but expects a resolution soon.
