Portugal selects Lufthansa for a 44.9% stake in TAP

Portugal has selected Lufthansa as the preferred buyer of a 44.9% stake in TAP Air Portugal, choosing the German airline group over Air France-KLM. The proposed investment is worth €1.2 billion, according to the government and reports from Reuters and the Associated Press.

A further 5% of TAP is reserved for employees, leaving the Portuguese state with a majority holding. Lufthansa said it would preserve TAP’s brand, Lisbon hub and public-service links to Portugal’s islands and diaspora. The carrier’s network is particularly valuable for routes connecting Europe with Brazil, Portuguese-speaking Africa and the United States.

The sale still requires European Union competition and regulatory approvals, so the selection is not a completed transfer. Authorities will examine how the deal affects airline concentration, airport slots and competition within the Star Alliance network. TAP operates more than 90 aircraft and was returned to full state ownership during the pandemic before becoming profitable again.

For Portugal, the decision seeks private capital and a larger airline partner without surrendering public control. For Lufthansa, it offers a stronger position in Lisbon and access to fast-growing South Atlantic markets, provided regulators accept the proposed structure.