Air France-KLM is interested in acquiring an equity stake in TAP Air Portugal, according to Reuters, which has quoted unnamed sources familiar with the matter.
If confirmed, this would mean that the Portuguese flag carrier is now in the sights of the three major European airline groups, namely Lufthansa Group, International Airlines Group (IAG) and now, Air France-KLM.
The Portuguese government is expected to move ahead with the privatization of TAP Air Portugal in 2025, but the exact conditions of the offer and the percentage of ownership that will be put up for sale are not yet known.
While the current government is open to selling 100% of the airline, some of the political parties on which it depends are opposed to a full privatization.
In September 2024, the CEO of Lufthansa Group, Cartsten Spohr, visited Lisbon to meet with key Portuguese decision makers. Reportedly, he expressed the German airline’s interest in acquiring at least 19.9% of TAP Air Portugal, a percentage that would keep the deal outside of the scrutiny of the European competition authorities.
IAG is also known to be looking at a potential investment in TAP Air Portugal, with a view to consolidating its strong position in the Iberian and Europe to Latin America markets following the European Commission’s rejection of its bid for acquire Spanish competitor Air Europa.
In large part, TAP Air Portugal is particularly attractive to its European suitors because of the advantageous geographical position of its Lisbon (LIS) hub and the airline’s extensive network in Brazil and Africa.