Air France-KLM and Lufthansa Vie for TAP: A Strategic Move in European Aviation

Air France-KLM and Germany's Lufthansa emerged as the sole contenders on Thursday in the race for a minority stake in Portugal's flag carrier, TAP, amid the nation's privatisation drive. Marking their strategic intent, both airlines submitted non-binding bids, aiming to expand TAP's global connectivity.

With a 44.9% stake in TAP up for grabs, Portugal hopes to find a strategic partner capable of enhancing the carrier's global reach. This process kicked off in July, with the eventual aim of transitioning TAP into a more competitive player on the world stage. A spokesperson from Lufthansa confirmed their offer following a similar move by Air France-KLM.

Although initial interest was shown by British Airways' parent company, IAG, they withdrew from the bidding, opting instead to focus on existing internal growth opportunities. The next phase will see Parpublica, the state holding company overseeing the bids, evaluate each proposal, with final binding offers expected within 90 days.