Lufthansa Just Bought Nearly Half of Portugal’s National Airline

Lufthansa Group has acquired a 44.9 percent minority stake in TAP Air Portugal, according to an airline news roundup covering the deal, which was completed on Tuesday, November 3. The reported price was roughly $1.1 billion, making it one of the larger European airline transactions of the year.

The strategic logic is network reach. TAP’s Lisbon hub has long been a gateway to Brazil and other South American markets and to parts of Africa, and the stake gives Lufthansa, SWISS and the group’s other airlines easier access to those routes through codeshares and connections.

What it means for passengers is still unclear. TAP has built a reputation for competitive transatlantic fares with a stopover in Lisbon, and some observers worry that the cheap fares it is known for could fade over time as it becomes more closely aligned with a large group. No immediate changes to pricing or schedules have been announced.

Because the stake is a minority one, TAP continues to operate under its own brand. Travelers with tickets or miles in TAP’s Miles&Go program should not see any change right now, but it is worth watching for loyalty-program announcements and new joint routes in the months ahead.

Sources: Upgraded Points