Pax Sentinel - Lufthansa Set to Acquire Stake in TAP Portugal

The Lufthansa Group is poised to secure a 44.9% stake in TAP Air Portugal, according to Portuguese broadcaster SIC, a report amplified by Reuters on October 13, 2026. This development suggests Lufthansa has surpassed Air France-KLM in the privatization process for the Portuguese national airline. The Portuguese government is expected to formalize its decision at an extraordinary Cabinet meeting scheduled for today, October 14, 2026. Lufthansa's bid included an all-cash offer, a factor cited as contributing to its advantage over Air France-KLM, which proposed a combination of cash and shares. Bid Details and Rationale Lufthansa's stronger financial position was also noted as a key element in its favor. The precise financial terms and valuations of the offers have not been publicly disclosed. The process to privatize TAP Air Portugal was relaunched in the summer of 2025, with both Lufthansa and Air France-KLM submitting binding offers in July 2026. The Portuguese government requested improved proposals, leading both bidders to submit final offers in September 2026. TAP's strategic value lies in its Lisbon hub and its extensive network connections, particularly to Brazil and other South Atlantic destinations. Lufthansa Chief Executive Officer Carsten Spohr indicated that acquiring a stake in TAP Air Portugal is a logical step to strengthen the airline as a leading carrier for the South Atlantic. This move aligns with Mr. Spohr's previously articulated corporate strategy, in which [market consolidation and carrier elimination are presented as core expansion objectives](/en/article/11LwoUEW_spohr-confesses-to-market-consolidation-monopolization) for the Lufthansa Group. Next Steps for Acquisition The acquisition of this initial minority stake is intended to establish a long-term partnership, aiming to ensure TAP's future as Portugal's national airline. However, the transaction will not conclude immediately. It will require further negotiations and approval from the European Commission's Directorate-General for Competition, a process that could extend between 18 and 24 months. The European Commission previously approved a restructuring-aid package totaling €3.2 billion for TAP in 2021, following an initial €1.2 billion rescue loan in 2020. This support included conditions such as operational restructuring and asset sales. The Portuguese government announced in June 2026 that TAP had successfully completed its restructuring plan. Prime Minister Luís Montenegro has stated the government's objective for TAP to achieve profitability and financial sustainability, reducing its reliance on public support. The Portuguese state plans to retain a 50.1% holding in TAP, with an additional 5% reserved preferentially for employees. Lufthansa has maintained an active presence in Portugal for over 70 years, operating 353 weekly flights to and from the country. The group also has plans to expand its Lufthansa Technik facility near Porto, potentially increasing its workforce in Portugal to over 1,000 by 2030.