Omanghana
Portugal has selected Lufthansa Group as its preferred buyer for a minority stake in TAP Air Portugal, choosing the German airline’s proposal over a competing bid from Air France-KLM.
Prime Minister Luís Montenegro announced the decision on Wednesday, October 14, 2026, saying Lufthansa’s financial offer was 16% higher than its rival’s. The Portuguese state will initially retain a controlling 50.1% interest in the national carrier.
Lufthansa offered €1.025 billion for a 44.9% stake. The purchase price could rise to approximately €1.2 billion for up to 49.9%, depending on the uptake of shares reserved for employees and contractual adjustments.
The airline group said it was working with the Portuguese government and state holding company Parpública to finalize transaction documents. Completion remains subject to approval from the relevant authorities.
Under the proposed governance arrangements, Portugal would appoint five members of TAP’s nine-member board, including its chair. Lufthansa would nominate three of the four executive directors, with the government selecting the fourth.
The industrial proposal includes expanding TAP’s fleet to 117 aircraft by 2035 and 130 thereafter. Plans also envisage approximately €300 million in maintenance and engineering investment in Santa Maria da Feira, associated with 700 jobs.
TAP’s Lisbon hub and connections to Brazil, Portuguese-speaking Africa and North America make it a valuable addition to Lufthansa’s network. As of June, the Portuguese airline served 93 destinations, including 14 in Africa, with a fleet of 101 aircraft.
Lufthansa said its strategy would support TAP’s growth while preserving its Portuguese identity. Group Chief Executive Carsten Spohr described the airline as a longstanding Star Alliance partner with a strong position on South Atlantic routes.
The group also welcomed Portugal’s intention to move towards full privatization, saying majority ownership could generate further benefits.
Source: Omanghana
