Portugal has extended the privatisation of TAP until the end of 2026.
Portugal has extended the deadline for completing the privatisation of TAP Air Portugal until 31 December 2026. Air France-KLM and Lufthansa have been given another opportunity to improve their bids for a 44.9 per cent stake in the Portuguese national carrier.
The Portuguese government failed to single out a clear front-runner between Air France-KLM and Lufthansa. Following the analysis of the binding bids submitted at the end of July, both were rated very similarly on an overall level. Instead of immediately selecting an investor, an additional negotiation phase has been opened which will last for three weeks.
By decision of the Council of Ministers, the deadline for the entire procedure has now been moved to 31 December. By then, improved binding offers should be received, a new Parpública report prepared, an investor selected, and the contractual documentation prepared.
Price will not be the only criterion
Portugal is selling 44.9 per cent of TAP to a strategic partner, while an additional five per cent is reserved for employees. If some of these shares are not subscribed to, the selected investor will be able to take them over. At the same time, the government has emphasised from the outset that bids are not being assessed on price alone.
For Portugal, the development of TAP's network and the role of Lisbon as a hub for Brazil, Portuguese-speaking Africa and North America are particularly important. It is precisely this Atlantic position that is one of the main reasons why TAP is of interest to major European groups.
Two different strategies for TAP
Air France-KLM bases its offer on a plan that includes passenger traffic, cargo, loyalty programme and MRO operations. The group also cites the support of Delta Air Lines, a partner in the transatlantic joint venture.
Lufthansa sees TAP as the future leading carrier of its group for the South Atlantic, with Lisbon as a strategic hub. In doing so, the German group is drawing on the development model of national carriers such as SWISS, Austrian Airlines, Brussels Airlines and ITA Airways.
