Prime Minister Luís Montenegro says the binding bids submitted for the partial privatisation of TAP Air Portugal have exceeded the government’s expectations, describing the level of interest from Europe’s largest airlines as unprecedented.
Speaking in Estarreja yesterday (July 30) during the presentation of Bondalti’s REPower Chemicals decarbonisation project, Montenegro said the process marked the first time that Europe’s leading airline groups had competed for a stake in Portugal’s flag carrier.
“This is not the first privatisation process involving TAP, nor the first attempt to maximise the company’s potential. But it is the first time that Europe’s major airlines have shown interest. Of the three largest, two have demonstrated that interest,” he said.
Air France-KLM and Lufthansa submitted binding bids on Wednesday, the deadline set by the government, moving the sale process into its third and final mandatory stage. The government is selling a 44.9% stake in the airline to a strategic investor.
Montenegro declined to comment on the content of the competing offers, saying their evaluation would take place in due course. However, he indicated that the proposals appeared to value TAP more highly than anticipated.
“All indicators point to a valuation higher than what was expected given the company’s potential,” he said, adding that integration into either airline group would “exponentially boost TAP’s purpose and performance”.
Both bidders have since outlined their visions for the Portuguese carrier.
Air France-KLM chief executive Benjamin Smith said his group was confident its proposal was “sufficiently solid” to be accepted by the Portuguese state. He highlighted the group’s decentralised management model, pointing to KLM’s continued autonomy more than 20 years after joining the group, as well as its record of stable industrial relations. Smith said Air France-KLM plans to deepen cooperation with TAP across route networks, cargo, loyalty programmes and management, while expanding aircraft maintenance activities in Portugal and exploring the creation of a shared services centre.
Lufthansa Group, meanwhile, said its proposal aims to strengthen TAP as Portugal’s national airline while preserving its identity. Chief executive Carsten Spohr described the bid as a natural extension of the group’s decades-long relationship with Portugal, saying Lisbon would be further developed as a strategic South Atlantic hub linking Europe with Latin America, Africa and North America. The German group also pledged to expand its industrial presence in Portugal, building on its new Lufthansa Technik maintenance facility in Santa Maria da Feira, which is expected to employ more than 1,000 people by 2030.
Both airline groups have stressed that their plans extend beyond a financial investment, promising long-term strategic partnerships that would reinforce TAP’s international network while maintaining its Portuguese identity.
The privatisation has attracted significant attention because of TAP’s strategic importance to Portugal, particularly its extensive links with Brazil, Africa and North America, and its role in supporting tourism and the wider economy.
The government has not indicated when it expects to announce a preferred bidder.
Sources: Lusa, DN, AEROIN
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