Air France-KLM and Lufthansa submit binding bids to buy TAP

Portugal's state-owned asset manager Parpública announced on Wednesday that it has received two binding proposals for the partial privatisation of TAP Air Portugal. Air France-KLM and Deutsche Lufthansa submitted their official bids to acquire a 44.5% stake in the national carrier.

According to Parpública's statement, the company now has 30 days to analyse the documentation and submit a report to the Portuguese government. If additional clarifications are needed, the deadline will be suspended until the information is provided.

The binding proposals already specify the purchase price for the 44.5% stake, as well as an industrial and strategic plan to ensure the airline's sustainability and future. After reviewing Parpública's report, the government may invite one or both bidders to present a final offer.

The privatisation process was relaunched in 2025 by Prime Minister Luís Montenegro's government. Initially, International Airlines Group (IAG), owner of Iberia, was also in the race but withdrew, leaving Air France-KLM and Lufthansa as the only contenders. Both submitted their binding offers on Tuesday, July 28.

Portuguese law allows the sale of up to 49.9% of TAP's capital to private investors, with the state retaining a majority stake. Of this, 5% is reserved for employees, and any unsubscribed portion can be acquired by the selected investor.

Infrastructure Minister Miguel Pinto Luz has expressed hope that the process will be concluded by September. He indicated that the chosen investor could begin co-managing the airline with the current board as early as 2026, though the actual capital injection is expected only in the summer of 2027.