Air France—KLM has officially joined Lufthansa and IAG (the parent of Iberia, British Airways, and others) in bidding for a 49% stake in TAP.
TAP was renationalized in 2020 during the COVID-19 pandemic, and the Portuguese government has injected more than 3 billion euros to recapitalize the airline and prevent it from folding.
You can access TAP here.
The main prize for all these suitors is TAP’s strong air links to Portugal’s former colony in South America (Brazil).
The Portuguese government’s original plan was to sell the entire airline, but the current party in power wants to initially offload a 49% stake by early 2026, attracting interest from all three main airline groups in Europe.
Lufthansa, however, is still busy trying to integrate its recent purchase of Italy’s flag carrier (ITA), while Air France – KLM recently acquired a minority stake in SAS with an option to take over the majority of the airline in a few years.
IAG was recently blocked from acquiring its Spanish rival, Air Europa, and it is difficult to see how taking a stake in TAP would be allowed, as it would cement their dominance of the Iberian peninsula.
Conclusion
Looking at the European aviation sector and these three players, it would probably be beneficial if Air France—KLM took a stake, as Lufthansa Group already controls so many airlines in Central Europe, and IAG would become too dominant in the Iberian peninsula if it controlled both Iberia and TAP.
If Lufthansa is not the successful suitor, TAP will swiftly exit the Star Alliance and join Oneworld (IAG) or SkyTeam (Air France—KLM).
