Lufthansa CEO expects smoother regulatory path for TAP Air Portugal stake

Lufthansa Group chief executive Carsten Spohr expects an easier regulatory review of the group's planned minority stake in TAP Air Portugal, citing limited overlap between the two carriers' networks.

The Portuguese government said Lufthansa had won the contest for up to 49.9% of the Portuguese flag carrier. Lufthansa has offered just over €1 billion, about $1.12 billion, for 44.9% of TAP. That figure could rise to €1.2 billion and 49.9% depending on how many shares employees take up.

The German group is working with the Portuguese government and the privatisation agency Parpublica to finalise transaction documents. The deal still needs approval from the relevant authorities.

Speaking on an analysts' call on 15 October, Spohr said Lufthansa currently holds about 9% market share between Europe and Latin America and ranks sixth on the South Atlantic. Combined with TAP, that would reach roughly 20%, level with IAG, its strongest competitor on routes to Latin America.

Air France-KLM holds about 17%, according to Spohr, which would leave the three large European network groups with comparable positions. He argued this would increase competition, a point he expects Brussels to weigh.

Lufthansa's earlier bid for a partial stake in Italy's ITA Airways went through a lengthy European Commission process before winning conditional clearance, subject to remedies addressing competition concerns.