- Air France-KLM and Lufthansa Group submitted binding bids for TAP.
- Both bidders intend to preserve Lisbon as a hub.
- Air France-KLM plans to invest in MRO in Portugal.
- Delta Air Lines supports Air France-KLM’s bid.
- Lufthansa Group would make Lisbon a “strategic hub” for South America.
Air France-KLM and Lufthansa Group have submitted binding bids to acquire between 44.9pc and 49.9pc of TAP Air Portugal from Parpública. Both bidders stressed their intention to preserve Lisbon as a hub and strengthen Portugal’s connectivity, including on transatlantic routes to North and South America. Air France-KLM highlighted its plans to invest in MRO in Portugal, developing TAP’s capabilities based on the existing partnership with Air France Industries KLM Engineering & Maintenance.
Air France-KLM’s bid is supported by minority shareholder Delta Air Lines, which pledged to begin negotiating a strategic commercial agreement with TAP if the bid is chosen. Lufthansa Group highlighted that TAP is already an alliance partner through Star Alliance and underlined that Lisbon would become the group’s “strategic hub” focused primarily on serving South America. Lufthansa Group also recalled that it already invests in the MRO segment in Portugal, with construction of a new Lufthansa Technik facility in Santa Maria da Feira.
Neither party disclosed the value of their bid. The acquisition would strengthen the presence of either airline group in the Portuguese market and increase competition in the transatlantic market.
