Portugal signs TAP sale contract with Lufthansa, pledging to keep airline Portuguese
The government and Lufthansa have signed a contract for the sale of TAP to the German group, which says it will remain a "Portuguese airline"; the prime minister pledges to preserve the "TAP brand and identity".
On Tuesday, the Portuguese government signed the share sale contract for TAP with German carrier Lufthansa, finalizing the terms of the deal previously confirmed in October. Prime Minister Luís Montenegro praised the agreement, emphasizing that it enables the country to safeguard its strategic interests and maintain TAP's distinct identity and brand. He stressed that, if the decision had not been made, it would have compromised those very values.
Montenegro highlighted that Lufthansa has consistently shown a commitment to preserving TAP's uniqueness, capitalizing on the airline's potential to benefit Portugal's communities, regions, and economy. He argued that the airline's strong ties with its Autonomous Regions and globally dispersed communities, as well as with language-sharing nations, are assets rather than burdens.
Montenegro stressed that this unique identity has been preserved, along with social harmony within the company and its commitment to TAP's workforce.
The prime minister noted that Portugal is taking a crucial step in ensuring it will continue to have a Portuguese airline with a Portuguese brand and identity. At the signing ceremony in the TAP Campus near Lisbon Airport, Montenegro, Finance Minister Joaquim Miranda Sarmento, and Lufthansa CEO Carsten Spohr were present. Spohr described the deal as an important milestone for TAP, Portugal, and the Lufthansa group, while pledging that TAP will continue to operate as a Portuguese airline.
Spohr emphasized the company's intention to develop Lisbon as one of Lufthansa's hubs while preserving its unique character. He noted that, although Lisbon is a crucial part of Lufthansa's strategy, other locations such as Porto, Funchal, Madeira, and the Algarve are also vital to the group's plans. Spohr expressed excitement about the opportunity the deal presents, pointing out potential access to new markets in Portugal, Africa, and Latin America, particularly Brazil.
In October, the government announced Lufthansa as the chosen bidder for a partial privatization of TAP, offering €1.201 billion for up to 49.9% of the airline's capital. The government holds 51% of the shares and a majority on the board, with the remaining 49% transferred to the Lufthansa group. The finalization of the contract and the completion of the sale, followed by TAP's integration into the Lufthansa group, will depend on European approval, expected in the first half of 2028.
Until then, TAP will continue to operate independently, under the watchful eye of the German conglomerate.
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