Air France-KLM and Lufthansa submitted binding offers on Wednesday to acquire a minority stake in TAP Air Portugal, advancing a privatization process narrowed to two bidders after IAG withdrew.
The sale covers 44.9% of TAP's share capital, including a 5% tranche reserved for employees, with recent valuations placing the airline between 1.4 billion and 2 billion euros. Air France-KLM entered the race with backing from Delta Air Lines and pledged to make Lisbon its sole southern European hub. Lufthansa, framing the bid as a natural step within the Star Alliance, separately is building a maintenance facility in Santa Maria da Feira expected to create more than 700 jobs.
State holding company Parpública has 30 days to deliver a detailed report to the infrastructure and finance ministers. The government plans to select a winner by September, with management-sharing potentially beginning later this year and a capital injection expected in summer 2027.