Lisbon, Sept. 4, 2026 (Lusa) - The Government is set to begin final negotiations with the two bidders who have submitted binding offers for the purchase of 44.9% of Portuguese flag carrier TAP – Air France-KLM and Lufthansa – as announced on Friday by the cabinet office minister, Leitão Amaro.
Amaro stated that whilst the bids differ, they are «very close in overall valuation», which justifies «negotiating with both bidders» with the aim of securing «improved proposals» so that the Government can select «a single bidder for the final round of negotiations».
On 1 September, Parpública [the state business manager] submitted a report to the Government for analysis on the two binding bids for the privatisation of TAP. The process provides for the sale of up to 49.9% of the company's share capital, of which 5% is reserved for employees; any unsubscribed portion may be acquired by the selected investor under a right of first refusal.
Leitão Amaro clarified that the bids are «so close overall that it is in the national interest to have an additional, final phase of negotiations with both» bidders.
This final negotiation period with the two bidders will last «a few weeks».
Regarding the results presented by TAP for the first half of the year, which showed a loss of €99.2 million attributed to fuel prices, the Cabinet office minister chose to highlight «the historically high sales figures – among the highest on record» – recorded by the airline during the same period.
«Evaluations naturally always take into account this type of circumstantial factor as well as structural trends, particularly regarding sales and business growth,» he added.
Leitão Amaro said that price «is naturally an important criterion, but it is not the only one», given that the privatisation tender specifications require a comprehensive assessment of the bids, in terms of routes and the business plan, amongst other factors.
Regarding the mandate of TAP's CEO, Luís Rodrigues, which ended at the end of 2024, the minister said that the Government had not taken any decision.
Air France-KLM and Lufthansa submitted binding bids on 29 July, the final day of the deadline, in the TAP privatisation process.
The final bids include the financial and strategic terms for acquiring a stake in the airline; the planned investment, fleet development, commitment to areas such as maintenance and sustainable fuels, and compliance with labour commitments are also being assessed.
The process has, from the outset, provided for an optional negotiation phase to improve the bids before the investor is selected.
The final decision will also involve a series of formal steps, including approval by the Cabinet and obtaining the green light from the European competition authorities.
Air France-KLM was the first interested party to confirm the submission of a non-binding bid in April, and has reiterated its strong interest in the Portuguese carrier. The group also highlighted its experience in dealing with state shareholders.
The French state is the largest shareholder in Air France-KLM, with 27.98% of the share capital, followed by the Dutch state, which holds 9.13%.
«TAP fits perfectly into Air France-KLM's ‘multi-hub' strategy, and our aim is to strengthen operations in Lisbon, whilst developing connectivity in other cities across the country, including Porto,» the group's chief executive, Benjamin Smith, recently stated.
Lufthansa, for its part, supports TAP's growth in the Brazilian market, the expansion of the Lisbon hub – the central hub for flight distribution – and the strengthening of operations in Porto.
The German group is open to acquiring a minority stake, but intends to secure influence over the company's executive management.
Lufthansa Technik is also building an industrial facility at the Lusopark business park in Santa Maria da Feira, dedicated to the repair and maintenance of aircraft components. The investment is valued at hundreds of millions of euros and is expected to create more than 700 skilled jobs by 2027.
The Government is demanding guarantees regarding the retention of the TAP brand, its headquarters in Portugal, the Lisbon hub and routes considered strategic, including international connections that are important for the Portuguese economy and communities.
The government also reserves the right to cancel the process at any stage, without any entitlement to compensation for the interested parties, should it consider that the proposals do not safeguard the country's strategic interests.
CT/AYLS // AYLS
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