Three Carriers Bid for TAP Stake, Vowing to Preserve Routes and Jobs

Portugal is once again at a crossroads over TAP Air Portugal, the national carrier that connects Lisbon to four continents and underpins thousands of tourism jobs. Three heavyweight airline groups—each with global alliances, deep pockets and a history of absorbing rivals—have stepped forward to buy up to 44.9 % of the company. Over the next few weeks the State holding firm Parpública will sift through their credentials, while unions sharpen criticism and the Government tries to keep public opinion onside.

Stakes for Portugal’s Economy

The sale is not merely a boardroom transaction. Lisbon’s hub, crucial for long-haul flights to Brazil, Africa and North America, relies on TAP’s scheduling power to keep routes profitable. Officials insist that any buyer must ring-fence the Portuguese brand, maintain the airline’s headquarters in the capital and uphold commitments made when the State injected €3.2 B to rescue the company during the pandemic. A mishandled transfer could undermine tourism revenues, ripple through hotels and restaurants, and even dent cargo flows for exporters in the north of the country. That is why the Government, despite green-lighting a privatisation, still plans to keep a blocking minority and reserve 5 % of shares for employees, hoping to align worker interests with national objectives.

Who is in the Running

First on the list is the Lufthansa Group, which already owns SWISS, Austrian Airlines and Brussels Airlines and recently clinched an equity deal with ITA Airways. Its footprint in Portugal dates back seven decades, including a Lufthansa Technik maintenance base near Porto. Then comes Air France-KLM, holder of the world’s oldest continuously operating airline brand and a pioneer in sustainable aviation fuel partnerships. The third contender, International Airlines Group (IAG), controls British Airways, Iberia and low-cost Vueling; it boasts some of the highest margins in European aviation and has earmarked €12.6 B for new aircraft from 2025 to 2029. All three surpass the tender’s threshold of €5 B in annual revenue, bring long-haul expertise and maintain investment-grade balance sheets—qualities the Portuguese Government views as essential for securing TAP’s fleet renewal and digital overhaul.

Next Milestones in the Sale

By 12 December, Parpública must deliver a report confirming that each suitor meets legal and financial requirements, from audited earnings to a clean regulatory record. If cleared, the trio will have up to 90 days to file non-binding offers detailing price, funding sources, fleet expansion targets, and carbon-reduction strategies. Government ministers will then shortlist those submissions and issue invitations for binding bids, with another 90-day clock that can be shortened if urgency rises. After final proposals land, Parpública gets 30 days to recommend a winner, and the cabinet will sign off on sale contracts. The process could stretch close to a year because Brussels must also vet any transaction for competition risks, especially on lucrative Lisbon–Madrid and Lisbon–Paris corridors.

Workers’ Concerns and Political Friction

Inside TAP, enthusiasm is muted. Unions condemn the decision to scrap a traditional employee discount on the 5 % share tranche, calling it an affront to staff who endured pay cuts and shift squeezes during restructuring. The cabin-crew association SNPVAC accuses the Government of trying to sideline labour by making shares unaffordable, while the pilots’ union SPAC labels tax breaks promised to the eventual buyer a "revolting asymmetry". Labour leaders fear that a foreign owner might prune routes to Africa or the Azores if margins lag, threatening regional connectivity. Opposition parties from across the spectrum echo some of those anxieties, arguing that the State is handing over a strategic asset at the very moment it is turning a profit again.

What to Watch

Pressure points abound. The consortiums are likely to emphasise green fuels, digital bookings and seamless codeshares to convince Lisbon that TAP will stay relevant in a competitive Atlantic market. Parpública must weigh those pledges against hard numbers—how much capital is earmarked for new A321XLR jets, what timeline exists for debt reduction, and whether headquarters staff in Portugal keep their jobs. Brussels will scrutinise slots at Humberto Delgado Airport, already congested, to ensure a single group does not dominate. For ordinary passengers, the privatisation could mean more choice and newer aircraft; for taxpayers, it is a test of whether the €3.2 B rescue can be recouped. The coming months will reveal whether Portugal secures a partner that nurtures, rather than merely absorbs, its flag-carrier identity.