Lufthansa wins bid for 44.9% stake in TAP Air Portugal

Portugal’s government has selected Lufthansa to acquire a 44.9% stake in TAP Air Portugal, outbidding rival Air France-KLM by €16 million. Prime Minister Luis Montenegro announced the decision during a cabinet meeting, marking the end of months-long efforts to privatize the state-rescued airline. TAP, which was reintroduced to the public sector in 2020 to tackle heavy losses from COVID-19 lockdowns, remains one of the last state-owned carriers in Europe.

The Portuguese government will retain a minimum of 50.1% ownership, while employees will hold the remaining 5%. Lufthansa’s €1.025 billion bid secured the deal, surpassing competing proposals from IAG (British Airways) and Spain’s Iberia, who opted to withdraw from the competition. The airline currently employs approximately 7,700 people and operates a fleet of around 100 Airbus aircraft.