Lufthansa Group has submitted a non-binding offer to Portugal’s state holding company Parpublica for a minority stake in flag carrier TAP Air Portugal, meeting the April 2, 2026, deadline for the latest phase of the airline’s privatization.
Lufthansa’s Head of Strategy, Tamur Goudarzi Pour, confirmed the group’s intention to bid earlier this week, stating that Lufthansa would not be lowering the price it is willing to pay despite the energy crisis. He stressed that a minority stake was not a deterrent and that many integration benefits could be achieved even without immediate majority control.
Air France-KLM submitted its own non-binding offer hours before. The third invited bidder, International Airlines Group (IAG), is reportedly leaning toward withdrawing from the process. IAG considers the minority stake incompatible with its long-term strategy, with Chief Financial Officer Nicholas Cadbury having previously said the group would want a clear path to full or majority ownership.
The Portuguese government is selling a 44.9% stake in TAP, with an additional 5% earmarked for employees. Portugal announced the sale in September 2025, and all three airline groups formally expressed interest in November 2025. Portuguese Infrastructure Minister Miguel Pinto Luz has said the winning bidder will be selected by the summer.
Non-binding proposals had to include financial offers and future valuation mechanisms, industrial and strategic plans, expected synergies, and guarantees that TAP will maintain its status as a European Union air operator, according to the Portuguese news agency Lusa.
Lufthansa’s pitch for Lisbon
Lufthansa CEO Carsten Spohr described TAP as a “perfect match” during a press conference presenting the group’s 2025 results on March 6, 2026, highlighting the significance of Brazil and Latin America to Lufthansa’s expansion strategy.
Goudarzi Pour argued that Lufthansa’s position as Europe’s largest aviation group gives it an advantage over rivals that already have hubs near Portugal. Spohr noted that Air France-KLM and IAG, through their existing operations at Paris, Madrid, and London, already have significant footholds in markets geographically close to Lisbon, implying that a partnership with either would risk making TAP’s hub redundant rather than complementary.
Lufthansa has indicated it plans to invest in modernizing the customer experience, including in-flight connectivity via Starlink across all aircraft. The group is also building a Lufthansa Technik facility for aircraft component repair and maintenance in Santa Maria da Feira, near Porto, and is evaluating the possibility of establishing a pilot training school in Portugal in conjunction with the Portuguese Air Force.
A two-horse race?
If IAG formally withdraws, the contest for TAP would narrow to Lufthansa and Air France-KLM, two groups with contrasting visions for the airline. Air France-KLM has pledged to make Lisbon its sole Southern European hub, while Lufthansa has emphasized expansion from both Lisbon and Porto without diverting traffic to Frankfurt.
The two bidders also sit in different alliances. TAP is a Star Alliance member, as is Lufthansa. Air France-KLM operates within SkyTeam. A successful Air France-KLM bid would likely require TAP to switch alliances, with implications for codeshare agreements and frequent flyer programs.
TAP was renationalized in 2020 to stem losses caused by the Covid-19 pandemic and remains one of the few state-owned carriers in Europe. A successful deal would mark another step in European airline consolidation, following Lufthansa’s acquisition of a 41% stake in ITA Airways and a 10% stake in airBaltic.
