Air France-KLM Submits Non-Binding Offer for Minority Stake in TAP Air Portugal

Air France-KLM submitted a non-binding offer on Thursday to acquire a minority stake in TAP Air Portugal, becoming the first of three major European airline groups to formally enter the Portuguese carrier's privatization race. The non-binding bid was lodged with Parpública on April 2, the deadline set by the Portuguese government for preliminary proposals. The amount of the offer was not disclosed. The government, led by Prime Minister Luís Montenegro, aims to sell up to 49.9% of TAP's shares, with a 5% tranche reserved for employees. Air France-KLM's move signals the start of the final phase of preliminary bidding in one of Europe's most closely watched airline privatizations.

Lisbon hub seen as gateway to Brazil and Africa The strategic appeal of TAP centers on its Lisbon hub and the route network it commands, particularly toward the Americas and Africa. TAP holds roughly 25 (% of European capacity) — TAP's share of European air capacity to Brazil, making it a prized asset for any group seeking to expand in those markets. Air France-KLM CEO Benjamin Smith framed the bid explicitly around this geography, describing Lisbon as a future southern European hub for the group. „Our ambition is to strengthen the operations at Lisbon while developing connectivity in other cities across the country including Porto. We look forward to the next steps of the privatisation process” — Benjamin Smith via RTE.ie Smith had previously signaled that TAP's Latin American connections were a key draw, and the group's statement noted that Lisbon would become its only southern European hub, complementing existing hubs at Paris-Charles de Gaulle, Paris-Orly, and Amsterdam-Schiphol. The Portuguese government has required that any winning bidder preserve the TAP brand, develop the network and fleet, and strengthen the carrier's presence at Lisbon, Porto, and Faro airports. TAP transported 16 (million passengers) — TAP passengers carried in 2024 in 2024 and posted a net profit of 125.9 million euros in the third quarter of 2025, though that figure offset losses from the first half of the year.

Lufthansa and IAG expected to bid before day's end Air France-KLM entered the race ahead of its two main rivals, but both Germany's Lufthansa and IAG — the parent company of British Airways, Iberia, and Aer Lingus — had also expressed interest and were expected to submit their own preliminary bids by the end of April 2, according to multiple reports. All three groups were invited last year by the Portuguese government to participate in the preliminary round. The government anticipated receiving three proposals in total. Once the initial review is complete, shortlisted bidders will have 90 days to submit binding offers, after which authorities may enter negotiations with one or more parties before reaching a final decision. Portugal has stated publicly that TAP needs to join a larger group to achieve the scale required for its long-term viability.

TAP's turbulent history shaped by a 3.2 billion euro rescue TAP's privatization comes after a prolonged period of state ownership and financial restructuring. TAP Air Portugal was founded in 1945 and has been a member of the Star Alliance since 2005, operating flights to 90 destinations in 34 countries. The airline was renationalized as an emergency measure in 2020 in response to the financial consequences of the Covid-19 pandemic. In exchange for a restructuring plan, the carrier received an injection of 3.2 billion euros in public funds. The Portuguese government has since pursued a privatization of up to 49.9% of the airline's capital, with the aim of concluding the process in 2026. The 3.2 billion euro public bailout has made the privatization politically sensitive, with officials insisting that any buyer must demonstrate a credible plan to develop the carrier rather than absorb or diminish it. Air France-KLM is itself in the process of integrating Scandinavian airline SAS, which would give the group four hubs if the TAP deal proceeds: Amsterdam-Schiphol, Paris-Charles de Gaulle, Copenhagen, and Lisbon. TAP currently operates a fleet of 102 aircraft, mostly from Airbus, with 92 in active service, according to Planespotters.net as cited by Bloomberg. The outcome of the bidding process is expected to reshape the competitive landscape of European aviation consolidation.

TAP Air Portugal Privatization — Key Milestones: — ; — ; — ; — ; —