Portugal opens final TAP sale talks with Lufthansa and Air France-KLM

Portugal has decided to enter final negotiations with both Lufthansa Group and Air France-KLM over the sale of a minority stake in state-owned carrier TAP Air Portugal. The government concluded that the two binding offers received “very similar” overall assessments.

The talks are expected to last several weeks. Their purpose is to obtain improved proposals from each bidder. Once that phase ends, Portugal will pick one of the two groups for exclusive final negotiations. No timeline for that selection was given.

The government has not disclosed the size of the stake on offer or the value of the bids. TAP has been majority-owned by the Portuguese state since a 2020 rescue package. The privatisation has drawn interest from several European airline groups.

Lufthansa and Air France-KLM were the only bidders to submit binding offers by the deadline earlier this year. Both see TAP as a way to strengthen their positions on routes between Europe and South America, particularly Brazil. The Portuguese carrier’s Lisbon hub is a key transit point for those markets.

Analysts have said the final choice may depend on commitments over jobs, hub development, and debt reduction. The government has previously said it wants a strategic partner rather than a simple financial investor. It also needs approval from the European Commission, which has monitored state aid conditions.

The two bidders have not commented publicly on the government’s decision to negotiate with both. A further update is expected once the improved offers are received.