Portugal’s Flag Carrier Is About to Get a German Co-Pilot

Lufthansa Group has formally signed an agreement for a 44.9 percent stake in TAP Air Portugal, according to aviation trade coverage this week. The signing is a significant milestone in the long-running effort to bring a strategic partner into Portugal’s national airline.

The size of the stake is worth noting. At 44.9 percent, Lufthansa would hold a large minority position rather than outright control, a structure that is often used to balance a buyer’s influence against concerns about keeping a national carrier’s ownership and traffic rights tied to its home country.

TAP is valued for its Lisbon hub, which sits at a convenient crossroads between Europe, Africa and the Americas and has been especially strong on routes to Brazil. For Lufthansa, whose group also includes Swiss, Austrian and Brussels Airlines, a stake in TAP would add a South Atlantic gateway to a network that is already heavily oriented to central Europe.

The reports reviewed do not spell out the price, the closing timetable or the regulatory approvals still required, and a signing is not the same as a completed deal. For passengers, any practical changes such as loyalty program links, codeshares or schedule coordination would likely come later and would be announced separately by the airlines.

Sources: Economy Class & Beyond