Portugal’s government has selected Lufthansa to acquire a 44.9% stake in TAP Air Portugal, two people familiar with the matter said on Wednesday. The decision makes the German airline the strategic partner of one of Europe’s last independent flag carriers.
Lufthansa came out ahead of Air France-KLM, which had also submitted an improved final offer in late September. The government will outline the deal’s terms at a news briefing later in the day.
Bid terms and financial strength behind the choice
Lufthansa is offering an all-cash deal for its stake, while Air France-KLM proposed a mix of cash and shares in the Franco-Dutch group. The sources indicated that the German group’s stronger financial position was a key factor in the evaluation. Portugal’s Infrastructure Ministry declined to comment.
Both carriers submitted final bids for the stake in September, after the government asked them to improve their offers. An extraordinary cabinet meeting was scheduled for Wednesday to confirm the winning bidder.
TAP’s role in Portugal and its recent struggles
TAP is Portugal’s flag carrier and largest airline, headquartered in Lisbon with its main hub at Lisbon Humberto Delgado Airport. Founded in 1945, it links Portugal with Europe, Africa, the Americas and Brazil, where its network is among the strongest of any European carrier due to historic ties.
The airline is a member of the Star Alliance and operates a fleet focused on Airbus aircraft, serving more than 80 destinations. It has been majority state-owned for most of its history but has faced financial challenges and restructuring in recent years.
