Air France-KLM submitted a non-binding offer early on April 2 for a minority stake in TAP Air Portugal. Portugal moves ahead with its long-running plan to privatise part of the airline.
Portugal Seeks a Strategic Partner
The Portuguese government is aiming to sell a 44.9% stake to an airline partner, while reserving 5% for employees. That means the state would still keep control of the carrier, even after bringing in a private investor. The government has made clear it intends to keep the airline’s identity, brand, and Lisbon hub intact, even as it seeks outside investment.
The privatisation aims to strengthen TAP’s financial position following years of restructuring and public support. TAP remains important in Portugal’s aviation market and the sale has drawn interest due to the airline’s long-haul network and Lisbon hub. The privatisation process is expected to move forward over the coming months, with a final decision on the preferred bidder later this year.
Lufthansa Also Bids, While IAG Steps Away
The deadline to submit non-binding bids passed on April 2, and Reuters reported that Air France-KLM, followed by Lufthansa were the only airlines to file offers. Lufthansa also confirmed a non-binding bid, while IAG, the parent company of British Airways and Iberia, chose not to proceed despite earlier interest.
The bidding round is now being reviewed by Portugal’s state holding company, Parpública, which will assess the proposals before a preferred partner is chosen. If the process stays on track, the government aims to complete the deal in the second half of 2026.
For passengers, the outcome could shape TAP’s future network strategy, partnerships and long-term growth, especially on routes connecting Portugal with Europe and beyond.
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