Deadline day for TAP bids as Air France-KLM and Lufthansa submit final offers
Two of Europe's largest airline groups have until the end of today to submit their final proposals for a stake in Portugal's flag carrier, setting in motion a 15-day evaluation period by the Portuguese Government.
Miguel Pinto Luz, the Minister for Infrastructure and Housing, confirmed the timeline on Monday at the VIII Summit of Portuguese Tourism in Lisboa, organised by the Confederation of Tourism of Portugal. The government must now assess the final offers from Air France-KLM and Lufthansa before making its selection.
What is being sold
The privatization process contemplates the sale of up to 49.9% of TAP's capital. Of this, 5% is reserved for the airline's workers. Any portion not subscribed by employees can be acquired by the selected investor through a right of preference.
The government initiated final negotiations in early September after both groups submitted binding offers in July. According to the Minister of the Presidency, Leitão Amaro, the initial proposals were "globally so close that the best course for the national interest is to have an additional, final phase of negotiation with both candidates."
Beyond the price tag
While the financial consideration is important, ministers have emphasized that the final decision is not based on price alone and represents a broader strategic choice.
The evaluation criteria established by the government tender specifications include:
• The robustness of the industrial project
• Development of the route network and Lisbon hub
• Investment in maintenance and sustainable aviation fuels
• Compliance with labour commitments
The public corporation Parpública delivered its analysis of the two binding offers to the government on 1 September. That report evaluates the proposals on their absolute and relative merit across these strategic pillars.
The competing visions
Air France-KLM has stressed its experience working with state shareholders — the French state holds 27.98% of the capital, with the Dutch state holding 9.13%. The group's chief executive, Benjamin Smith, stated that TAP "fits fully into Air France-KLM's 'multi-hub' strategy," with an objective to "reinforce operations in Lisboa while developing connectivity in other cities in the country, including Porto." The group has also highlighted a track record of stable labour relations spanning more than eight years.
Lufthansa has signalled it would acquire a minority stake while seeking influence over executive management. The German group advocates for TAP's growth in the Brazilian market, expansion of the Lisboa hub, and reinforced operations from Porto. Lufthansa Technik is already constructing an industrial unit in Santa Maria da Feira, near Porto, dedicated to aircraft component repair. That project is valued at hundreds of millions of euros and is expected to create over 700 qualified jobs by 2027.
What happens next
Once the government selects a preferred investor, the process still requires formal approval by the Council of Ministers and the green light from European competition authorities. The European Commission will assess the transaction under EU merger control rules, with particular attention to market concentration and slot allocation at congested airports.
A final decision from Lisboa is expected in the coming weeks.
