Competition is intensifying as major European airlines position themselves to acquire a 49.9% stake of TAP Air Portugal. In July 2025 the Portuguese government announced its decision to move ahead with the privatization process. The plan is to sell nearly half of the flag carrier through a bidding process, within a year to strengthen TAP’s ability to compete with larger European groups and to recoup financial losses.
The government has set criteria for any potential investor: companies entering the bidding process must commit to preserving the TAP brand, continuing operations in Lisbon and Portugal’s secondary airports, and supporting projects related to sustainable aviation fuel amongst others. Additionally, 5% of TAP’s shares will be reserved for employees, reinforcing the government’s plan to keep workers involved in the company’s future.
Lufthansa, IAG and Air France-KLM Among the Bidders
Amongst the European airlines biddings, the Lufthansa Group has submitted a formal request expressing its interest, confirming earlier expectations that the German aviation group would join the race. Lufthansa said it aims to form a long-term partnership with TAP should its bid move ahead. In a recent statement, CEO Carsten Spohr said the airline group “welcomes the Portuguese government’s privatization process,”adding that Lufthansa intends to strengthen Portugal’s global connectivity and protect Portuguese identity.
IAG, the parent company of British Airways and Iberia, has also joined the list of bidders, signaling its intent to expand its presence on southern European routes where TAP plays a strategic role. Another major contender is Air France-KLM, which has shown repeated interest in strengthening its footprint on Atlantic routes.
TAP Privatization Decision
Parpública, the state holding company overseeing the sale, now has 20 days to review all submitted expressions of interest and prepare a detailed report evaluating whether candidates meet the participation requirements, according to the official process.
While TAP remains a key player in transatlantic travel, the airline ranked last in Europe for flight punctuality in October 2025. The report, published by OAG, measures delays and cancellations and considers a flight late if it arrives more than 15 minutes after its scheduled time. Despite the low punctuality score, TAP’s cancellation rate was among the lowest, highlighting a noticeable contrast between delays and overall operational reliability.
As the TAP privatization 2025 process advances, the coming months will determine which European airline group gains a strategic foothold in Portugal’s aviation landscape.
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