Air France-KLM and Lufthansa submit improved bids for 44.9% stake in TAP Air Portugal

Improved binding bids submitted to Parpublica

Portugal's state holding company Parpublica confirmed on 30 September 2026 that it received updated binding proposals from Air France-KLM and Deutsche Lufthansa AG. Both European airline groups submitted improved offers for the acquisition of a 44.9% reference stake in Portuguese flag carrier TAP Air Portugal. The submissions arrived on the final day of the negotiation window established by the Portuguese government following earlier rounds of assessment. Parpublica will evaluate the revised terms in a detailed descriptive report to determine their absolute final merit. This report will be delivered directly to the government ministers responsible for finance and air transport infrastructure. The transaction proceeds under Article 21 of the tender specifications, approved under Council of Ministers Resolution no. 141-B/2025 and confirmed by Resolution no. 176-A/2026.

Competing strategic visions from Paris and Frankfurt

Air France-KLM outlined an operational proposal covering passenger transport, cargo, loyalty programs, and maintenance, repair, and overhaul (MRO) activities. The Franco-Dutch group aims to position Lisbon as its exclusive southern European hub while expanding TAP operations in Porto and other domestic airports. Air France-KLM confirmed that its transatlantic joint venture partner Delta Air Lines and the SkyTeam airline alliance support the bid. Benjamin Smith noted that advisory teams spent four weeks strengthening the submission to safeguard national connectivity and sovereignty.

Our interest in TAP is stronger than ever and we are excited to submit this Final Proposal for the acquisition of up to 49% of TAP.

Lufthansa confirmed the submission of an updated offer intended to reinforce its long-term commitment to Portugal. The German airline group stated that its record of developing network carriers makes it the best partner to expand TAP and preserve its role as the national flag carrier. Neither the bidding airlines nor Parpublica disclosed the financial amounts attached to the revised proposals.

Sale structure and schedule to mid-October

The privatization framework authorizes the sale of up to 49.9% of TAP Air Portugal, with 5.0% reserved specifically for the airline's employees. Under the tender rules, any portion of the employee allocation that is not subscribed may be acquired by the selected strategic investor through pre-emption rights. Initial bids for the carrier were submitted in July 2026, leading to a preliminary evaluation report from Parpublica on 1 September 2026. The government subsequently opened a supplementary negotiation round because the initial offers were evaluated as close in scope. Minister of Infrastructure Miguel Pinto Luz stated that the Portuguese government expects to announce the winning strategic partner by mid-October 2026.