Lufthansa will bear any EU remedies on its TAP stake, Portugal's secretary of state tells parliament

Remedies and the Commission review

Hugo Espírito Santo, Portugal's Secretary of State for Infrastructure, told the parliamentary budget committee on 2 November that Lufthansa will carry any regulatory remedies the European Commission requires on competition grounds before approving its entry into TAP's capital. He was answering questions from Paula Santos, parliamentary leader of the Portuguese Communist Party (PCP), during a hearing on the 2027 State Budget (OE2027). He declined to speculate on what the Commission's competition directorate, DG Comp, might decide. He said the buyer's commitment to pay the remedies directly was already on the record.

“Lufthansa is acquiring TAP to grow TAP, including in maintenance. I do not do futurology about what DG Comp will decide or not.”

The price and the debt dispute

Paula Santos asked about the financial terms of the partial privatisation, which Lufthansa won with a bid of 1,201 million euros for a stake of up to 49.9%. That figure includes a 5% tranche reserved for workers and the financial adjustments foreseen in the deal. The MP had cited 1,000 million euros of cash, drawing on a Correio da Manhã report. The secretary of state replied that she had left out TAP's debt of 3,300 million euros and liabilities of 6,000 million euros. The Correio da Manhã had run a headline on 16 October claiming Lufthansa gets TAP for free. The Finance and Infrastructure ministries responded at the time that a company is worth more than its cash or unreported losses, and that the price also covers an investment commitment in new assets, which the fleet alone represents between 3 and 4 billion euros.

German tourism outlook

Ulrike Bohnet, Germany's tourism director for Portugal and Spain, told Expresso in Lisbon that she views Lufthansa's entry into TAP's capital in very positive terms. She said the joint operation will strengthen business and tourism between Germany and Portugal. She added that good air connectivity is always a very relevant point. Bohnet also said Portuguese tourism is growing, with rising overnight stays and higher average spending per trip.