The Smart Marty Sky Dispatch
Lufthansa beats Air France-KLM to €1.2bn stake in TAP Air Portugal
Portugal has chosen Lufthansa to buy a 44.9% stake in TAP, completing the first phase of the airline’s privatisation. The deal still needs regulatory approval.
Lufthansa has been selected to acquire a 44.9% stake in TAP Air Portugal as part of the Portuguese privatization process, with the government confirming the deal after evaluating bids.
The transaction values TAP at €2.552 billion, and the state will hold a 50.1% stake, while Lufthansa will manage executive and operational aspects of the airline.
The deal includes plans for fleet expansion and growth in destinations, with a target to reach 117 aircraft by 2035 and 130 after 2035, and an allocation of up to eight Airbus A350-900s to TAP from 2030 onward.
Investment tied to the TAP deal comprises a €500 million pilot training school in Tancos, an innovation centre in Aveiro, a corporate services centre, and ongoing Lufthansa Technik investment in Santa Maria da Feira, alongside airport infrastructure upgrades in Porto and Faro.
The privatisation process contemplates job creation and broader aviation-sector growth in Portugal, with the government noting the transaction brings a stronger growth trajectory for TAP, the fleet, passenger numbers, destinations, and investment across the sector.
The process involves remaining steps and regulatory approvals, with officials indicating the eventual completion in 18 to 24 months, potentially in 2028, subject to European Commission clearance.