TAP Air Portugal gets Air France-KLM, Lufthansa bids

Air France-KLM and Lufthansa said Wednesday they had submitted bids to acquire a controlling stake in TAP Air Portugal as the Portuguese government moves to re-privatise the airline.

Portugal announced last September that it was seeking a major international airline to buy most of the 49.9% stake it plans to sell. Air France-KLM and Lufthansa had submitted non-binding offers in April and had three months to file binding bids.

Air France-KLM said it was bidding for a 44.9% to 49.9% stake and pledged to position Lisbon as its southern European hub. The group said the move would strengthen its position in the Americas and Africa.

Lufthansa did not say how large a stake it hoped to buy. The group, which also owns Swiss, Austrian and ITA, said it wanted to strengthen TAP as part of Lufthansa Group and make Lisbon a strategic hub for the South Atlantic.

Neither group disclosed how much money it was offering. Portuguese officials have indicated they hope to conclude the privatisation in late August or early September.

TAP was renationalised in 2020 to stem losses from the Covid-19 pandemic. The airline has about 7,700 employees and a fleet of about 100 Airbus planes.