Air France-KLM and Lufthansa submit final bids for 44.9% of Portugese airline TAP

Air France-KLM and Lufthansa have both submitted improved final bids for a major stake in Portuguese carrier TAP Air Portugal. This was reported by the state holding company Parpública. The final decision is expected in mid-October.

The Franco-Dutch and German airline groups are competing for a stake of at least 44.9 percent in TAP, which was nationalized during the covid-19 pandemic. Both are reportedly in part drawn in by TAP’s routes to Africa and South America.

Ben Smith, chief executive of Air France-KLM, which is bidding for as much as 49.9 percent of the shares, said he wants to make Lisbon the group’s southern European hub. That, he said, shows a “clear intention to create jobs and value in Portugal.” Lufthansa said its experience building airlines makes it a strong partner for TAP.

Previously in April, both airlines had submitted non-binding offers. After that, they were required to submit final bids within three months. “With this bid we once again underscore our ambition to create a global powerhouse in aviation from Europe,” Smith said at the time.