Lufthansa defeated Air France-KLM in the race for TAP Air Portugal: a deal worth 1.2 billion euros
The Portuguese government has chosen Lufthansa as the strategic investor in the national airline TAP Air Portugal. The German group offered 16% more than its competitor Air France-KLM, and the takeover could further strengthen its position in the transatlantic market.
Germany Lufthansa Group The winner of the tender for the partial privatization of the Portuguese airline TAP Air Portugal was the Portuguese government. The decision was confirmed on October 14, 2026, thus completing the first phase of the process of selling the state-owned carrier.
Under the selected offer, Lufthansa will acquire 44.9% of the shares, with the possibility of increasing to 49.9% if TAP employees do not exercise the right to purchase the shares reserved for them. The total value of the transaction in that case amounts to 1.201 billion euros, while the Portuguese state retains a controlling stake of 50.1%.
Lufthansa offered more and convinced the Portuguese government
In the final of the competition, the two remaining European aviation giants were Lufthansa Group and Air France-KLM. Portuguese Prime Minister Luís Montenegro confirmed that Lufthansa’s financial offer was 16% higher and contained fewer uncertainties in implementation.
In addition to the price, the TAP development plan, investments in the fleet and the preservation of the company's Portuguese identity also played an important role. Lufthansa also presented plans to increase Portugal's international connectivity and further expand its air operations.
TAP brings a strong network to Brazil and Latin America
For Lufthansa, TAP’s greatest strategic value is its developed network of flights between Europe, Brazil and other destinations in Latin America.
Lisbon could thus gain an even stronger role within the Lufthansa Group, in addition to the existing hubs in Frankfurt, Munich, Zurich, Vienna, Brussels and Rome.
TAP is already a member of the Star Alliance alliance, which facilitates future collaboration in distribution, connecting flights, and loyalty programs.
The takeover is still awaiting regulatory approval.
Although Lufthansa won the tender, the transaction has not yet been finalized. Regulatory approvals are still needed, including a procedure before the European competition authorities. The completion of the process is expected during 2028.
For European aviation, this is another step towards consolidating the market. After investing in ITA Airways, Lufthansa would further expand its portfolio by including TAP and strengthen its competitive position against the Air France-KLM and IAG groups.
