TAP Air Portugal Privatization: Lufthansa & Air France Bid

Air France-KLM and Lufthansa have submitted non-binding offers for a minority stake in TAP Air Portugal, initiating the next phase of the Portuguese flag carrier’s privatization process. British Airways parent company, International Airlines Group (IAG), has withdrawn from the bidding, leaving the two European airline giants to compete for a piece of TAP.

The deadline for submitting these initial bids was Thursday, April 2, 2026, as stipulated by the Portuguese government. According to the Portuguese Minister for Infrastructure, Miguel Pinto Luz, the three airline groups – Air France-KLM, Lufthansa and IAG – were given a 90-day window, starting January 2, 2026, to formalize their non-binding proposals.

Air France-KLM’s Vision for TAP

Air France-KLM has positioned Lisbon as a key strategic asset in its bid, stating that the city would become the group’s “unique Southern European hub” if their offer is successful. Benjamin Smith, CEO of Air France-KLM, emphasized the natural fit between TAP and the broader Air France-KLM network.

“We firmly believe that the next chapter of the airline’s history should be written as part of the Air France-KLM Group, building on this legacy and taking TAP to the next level. TAP is a natural fit within Air France-KLM’s multi-hub strategy, and our ambition is to strengthen the operations at Lisbon while developing connectivity in other cities across the country including Porto.”

Benjamin Smith, CEO of Air France-KLM Group

The airline group highlighted its extensive commercial network, encompassing Air France, KLM, and Transavia, as well as its strong partnerships with Delta Air Lines and Virgin Atlantic, as strengths that would benefit TAP. Air France-KLM also emphasized its experience working with state shareholders, suggesting a collaborative approach to the partnership.

Lufthansa Also in the Running

Lufthansa confirmed its intention to submit a bid, with Head of Strategy Tamur Goudarzi Pour indicating the company’s plans to media representatives. While details of Lufthansa’s offer remain scarce, their participation signals continued interest in expanding their European footprint.

IAG Withdraws from the Competition

In contrast to Air France-KLM and Lufthansa, IAG, the parent company of British Airways, has decided to end its pursuit of TAP Air Portugal. Previously, IAG had shown significant interest in acquiring a stake in the Portuguese airline, but has now opted to withdraw from the privatization process.

According to Bloomberg, IAG is reconsidering its pursuit of TAP Air Portugal after initially expressing strong interest. The reasons for IAG’s withdrawal have not been publicly disclosed.

Privatization Timeline

The Portuguese government anticipates selecting a winning bidder by the summer of 2026. The next stages of the privatization process will follow the evaluation of the non-binding bids submitted by Air France-KLM and Lufthansa. The government is hoping to finalize the sale and secure the future of TAP Air Portugal.

The outcome of this bidding process will have significant implications for the competitive landscape of European aviation, potentially reshaping airline alliances and route networks. The privatization of TAP Air Portugal represents a key strategic opportunity for the winning bidder to expand its presence in the Southern European market.