Air France-KLM and Lufthansa submit final bids for TAP privatisation
Air France-KLM and Lufthansa submitted their final bids on Wednesday for a 44.9% stake in Portuguese airline TAP. The Portuguese government now has 15 days to decide on the next steps.
Portugal's state shareholding manager, Parpública, announced on Wednesday that both candidates competing for TAP's privatisation — Air France-KLM and Lufthansa — had submitted their final bids for 44.9% of the airline's share capital. Wednesday marked the deadline set by the government.
Parpública said it will now prepare a descriptive report assessing the improvements each candidate made compared to their offers submitted on 29 July, evaluating their overall merit before forwarding it to the government ministers responsible for finance and air transport.
Minister for Infrastructure and Housing Miguel Pinto Luz had confirmed on Monday that final bids would arrive by Wednesday, after which the government would have 15 days to take a position on the process.
Assessment criteria
The bids will be evaluated based on planned investment, fleet development plans, commitments in areas such as maintenance and sustainable fuels, and compliance with labour obligations.
In its statement, Air France-KLM said it reiterated its strong interest in TAP by submitting a final proposal for a stake of up to 49.9% in the airline. Group CEO Benjamin Smith said he was convinced the revised proposal was the best way forward for TAP, its management, employees and customers, as well as for Portugal. He emphasised that the offer was built around a stronger Portuguese flag carrier, with Lisbon becoming the Air France-KLM Group's exclusive hub in Southern Europe.
Lufthansa, in a written statement, stressed its track record in developing network airlines, arguing it is the best partner to support TAP's future growth and strengthen its competitiveness.
The process has from the outset included an optional negotiating phase to improve bids before an investor is chosen. The final decision will require several formal steps, including approval by the Council of Ministers and clearance from European competition authorities. The TAP sale also includes 5% of shares reserved for employees, with any unsubscribed portion available to the selected investor.
