Air France-KLM and Lufthansa bid for TAP Portugal – but what happens next?

Both Air France-KLM Group and Lufthansa Group have now submitted binding offers to acquire a minority stake in TAP Air Portugal following on from their non-binding bids in April 2026.  

On July 29, 2026, Air France-KLM was first out of the starting blocks confirming that its offer was for a 44.9% to 49.9% stake in TAP Air Portugal.  

Later, Lufthansa showed its cards and announced that it too had submitted a bid for a minority stake in the Portuguese airline. 

In its statement, Air France-KLM stated that it had a “comprehensive strategic plan to strengthen TAP, with detailed projections of job and value creation throughout Portugal”.    

If selected, Air France-KLM said it would “position Lisbon as its unique Southern European hub” and partner Delta Air Lines, which publicly supports the bid, said if successful the US carrier “would promptly commence negotiations with TAP on a strategic commercial agreement involving”. 

KLM Air France-KLM also emphasized plans to develop new Maintenance, Repair and Overhaul (MRO) activities in Portugal, generate highly skilled jobs and increase Portuguese connectivity. 

Lufthansa said that its offer ” goes beyond a financial investment” with the carrier having “been active in Portugal for more than 70 years”. 

The company employs over 500 skilled professionals in the country and with its new Lufthansa Technik facility in Santa Maria da Feira that figure is expected to rise to 1,000 by 2030.   

The German firm added that it is “presenting an offer that combines strategic, industrial, social, and financial aspects”. 

Lufthansa also argued that it has already successfully developed national airlines such as SWISS, Austrian Airlines, Brussels Airlines, and most recently ITA Airways.  

What are the next steps in the process? 

TAP Air Portugal is owned wholly by the Portuguese state with the country’s investment company, Parpública managing the bidding process.

On July 29, 2026, Parpública set out the next steps that will be undertaken following the binding offers being received from Air France-KLM and Lufthansa.

Parpública confirmed that it received two binding bids from the two parties invited to do so following the completion of the second stage of the process.

Ian Dewar Photography / Shutterstock.comIn a statement, Parpública said it will now prepare a report that provides a detailed description of the proposals received.

The report will be submitted to the members of the government responsible for finance and air transport within 30 days. That deadline can be suspended if clarification is needed from either of the bidders regarding their proposals.

What happens next is based on ‘Article Four’ of the Resolution of the Council of Ministers No. 141-B/2025, published on September 29, 2026.

Under the article, Air France-KLM and Lufthansa will be issued draft agreements to sign if they ultimately win the bidding contest.

The two companies will take part in sessions to discuss their bids and provided with equal opportunities for discussions.

Air FranceParpública may refuse interactions if they are not genuinely intended to help with the purposes of the process.

Any exchanges between Parpública and the bidders during the information gathering phase can be formally documented, and form part of the final offers.

Air France-KLM and Lufthansa are allowed to conduct due diligence by meeting TAP’s management and visiting the airline’s operations. Any information shared must remain confidential.

The Portuguese government is selling a 44.9% stake in TAP, with an additional 5% earmarked for employees.

What Benjamin Smith, CEO of Air France-KLM Group, said

Smith said that over the past three years “our teams have worked closely with Portuguese stakeholders to come up with our strongest proposal for TAP”.

“What we have submitted today is not just the proposed price for an airline. It is a strategic, extensive, and comprehensive long-term plan for TAP and for Portugal as a whole. It is also a vision of where we would like to take this esteemed flag carrier, expanding on the legacy of what has been built by TAP’s talented people over the past 81 years,” Smith explained.

The CEO said he was pleased to “count on the support and alignment” of its long-term partner Delta Air Lines and its leader Ed Basitian.

Smith added: “Our overarching goal to ensure long-term growth for TAP, not only in Lisbon but also in Porto and other cities in Portugal, and to do so sustainably, as part of a robust and international group determined to bring value to its airlines’ home countries. Through this offer, Air France-KLM reaffirms its commitment to create a European global aviation champion, actively supporting European sovereignty.”

What Carsten Spohr, CEO of Lufthansa Group, said

In his statement, Spohr said that the Lufthansa Group “stands for a long-standing, trusted, and strategic partnership with Portugal”.

“For decades, we have been investing in Portugal, creating and securing skilled jobs, and connecting the country with Europe. Our interest in taking a stake in our Star Alliance partner TAP Air Portugal is the next logical step. We want to strengthen Portugal’s national airline as part of the Lufthansa Group and as the leading airline for the South Atlantic, with Lisbon as a strategic hub,” Spohr explained.

He added: “With SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways, we have demonstrated how the European integration of our Lufthansa Group secures prospects and growth for our home markets and hubs.”

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