Lufthansa has submitted its bid to acquire a minority stake in TAP Air Portugal, joining a growing list of European aviation heavyweights vying for the Portuguese carrier.
The German group filed its expression of interest with Parpública, Portugal’s state holding company, on Thursday – two days before the 22 November deadline. The move aims to establish a long-term partnership while preserving TAP’s Portuguese identity, Lufthansa said.
[See more: Portugal offers stake in flag carrier TAP]
The Portuguese government plans to sell up to 44.9 per cent of the airline’s capital, with 5 per cent reserved for employees under the Privatisation Law. If employees don’t fully subscribe to their allocation, the buyer gets first refusal.
Lufthansa CEO Carsten Spohr framed the bid as strengthening Portugal’s global connectivity whilst maintaining TAP’s national character. The partnership would reinforce Lisbon’s position as an Atlantic hub, expanding connections to South America, Africa and North America, the company said.
Operating in Portugal for over 70 years, Lufthansa currently runs more than 280 weekly flights to and from the country. It employs over 400 people locally, a figure set to grow to 1,000 by 2030 with a new Lufthansa Technik facility in Santa Maria da Feira for aircraft component repairs.
The German group positions itself as Europe’s consolidation leader, having integrated carriers including SWISS, Austrian Airlines, Brussels Airlines and ITA Airways whilst preserving their national identities.
Air France-KLM formalised its interest on Tuesday, whilst International Airlines Group – owner of British Airways and Iberia – has publicly expressed interest in joining the race.
Parpública now has until 12 December to assess which bidders meet participation requirements, including revenues exceeding €5 billion in at least one of the past three years and proven aviation sector experience. Qualifying candidates will then be invited to submit non-binding proposals.
The privatisation, which includes Portugália, TAP Healthcare Unit, Cateringpor and SPdH ground handling, is expected to take about a year, pending regulatory approvals.