TAP: final bids from Air France-KLM and Lufthansa have been submitted

Air France-KLM and Lufthansa have submitted their final bids for the privatization of 44.9% of TAP's share capital. These bids are expected to include enhancements over the offers initially submitted on July 29th. The state shareholding manager, Parpública, will now evaluate the improvements proposed by the two candidates, considering their overall merit and presenting a report to the relevant government ministries.

The final bids outline the financial and strategic terms for acquiring a stake in the Portuguese airline, with assessments based on planned investments, fleet development, commitments in areas like maintenance and sustainable fuels, and adherence to labor obligations.

Air France-KLM reiterates its strong interest in TAP Air Portugal, submitting a final proposal for a potential shareholding of up to 49.9%. CEO Benjamin Smith states that the airline's interest is stronger than ever and that their revised proposal aims to position TAP for the future while safeguarding Portugal's connectivity and sovereignty. The proposal is seen as an ambitious long-term strategic plan that would benefit TAP, its management, employees, and customers, as well as Portugal itself.

Lufthansa emphasizes that its proposal reflects confidence in the group's proven track record of developing network airlines, making it the best partner to support TAP's future growth, enhance its competitiveness, and continue its role as Portugal's flag carrier. The bidding process includes an optional negotiating phase to refine the bids before the eventual investor is chosen.

The final decision will also involve formal steps, such as approval by the Council of Ministers and approval from European competition authorities. The sale of TAP also involves 5% of shares reserved for employees, with any unsubscribed stake also available for acquisition by the selected investor.