TAP privatisation enters the home straight: Lufthansa and Air France-KLM circling
The State will sell 44.9% of the airline and binding offers are expected by the end of July. How the decision stands and what is at stake for the country.
The TAP saga is reaching a decisive chapter. The privatisation process has entered its final phase, with two European giants in the running to buy a slice of the airline: Lufthansa and Air France-KLM.
What is on the table in the TAP privatisation?
The State wants to sell 44.9% of TAP, reserving a further 5% for employees and keeping control of the company. It is not a sale at any price: only groups with revenues above 5 billion euros were allowed to bid, precisely to secure buyers with financial muscle and a global network into which TAP can slot.
Binding offers are expected by the end of July, and the Government’s decision should come in August or September, with the investor potentially chosen by October. Until then, expect the usual tug-of-war: guarantees over the Lisbon hub, over jobs, and over the routes linking Portugal to Brazil and Africa, where TAP holds a strategic value that is hard to replicate.
Why does the TAP sale matter to everyone?
TAP is not just a company: it is a piece of the economy and of the country’s image abroad. A stronger airline can mean more connections and more tourism; a bad deal can cost routes and influence. That is why the debate is as political as it is financial — the Government will have to show it is selling well without handing over the wheel.
The backdrop helps: Portugal’s economy has been growing above the euro-area average, which gives some negotiating room. Official progress on the process is announced by the Government.
Image: MarcelX42 / Wikimedia Commons (CC BY-SA 4.0)
