Lufthansa Beat Air France-KLM to Lisbon by 16 Percent

Lufthansa Group has been selected as the buyer of a minority stake in TAP Air Portugal, beating Air France-KLM in the final round. Lufthansa will initially acquire 44.9 percent, worth slightly over €1 billion, with 5 percent reserved for TAP employees. If staff do not take their full allocation, Lufthansa can rise to 49.9 percent, a package that could reach about €1.2 billion.

Portugal’s government said Lufthansa’s offer was 16 percent higher than the rival bid. The state keeps majority ownership of the airline and could sell its remaining shares later, but that would need a separate decision and is not part of this deal. The process also required commitments covering the TAP brand, the Lisbon hub, connections to Portuguese-speaking markets and the airline’s contribution to the national economy.

For travelers, the immediate impact is nil. The transaction still needs regulatory approvals and is expected to close in 2028, and TAP remains a member of Star Alliance, as it has been since 2005. Lufthansa says it intends to grow TAP’s network and set up an aviation training center in Portugal.

The longer-term interest is Lisbon’s position as a gateway between Europe, the Americas and Africa. A bigger partner could mean more feed from Lufthansa’s German hubs and new route options, though any changes are years away and will depend on regulators. One industry report quotes TAP’s chief executive warning that the approval path may be difficult.

Sources: Air Data News, FlyingInIreland