Lufthansa Submits TAP Bid as Portugal Weighs a Partner for Lisbon

Lufthansa has submitted a non-binding bid for a stake in TAP Air Portugal, joining Air France-KLM in the latest stage of Portugal’s privatization process.

The deadline for offers was April 2, 2026.

IAG, which had shown earlier interest, did not submit a proposal. Portugal is selling 44.9 percent of TAP to a strategic airline investor and reserving 5 percent for employees. The government wants to move the process forward this year.

TAP is one of the few remaining state-owned airlines in Europe that still offers a strong strategic position. A deal would give the winning airline group better access to important Atlantic markets and would add to the broader consolidation trend in European aviation.

TAP is attractive to major airline groups

TAP is valuable because Lisbon is more than a local hub. The airline has a strong network linking Europe with Brazil, Africa, and the US. That makes TAP important for long-haul traffic and connecting passengers, not just for Portugal’s domestic market.

Portugal is also trying to protect TAP’s national role. The government has said the winning bidder must support operations not only in Lisbon, but across the country’s wider airport network, including Porto, Faro, Madeira, and the Azores. That shows Portugal wants a buyer that can help the airline grow without weakening air access that supports tourism, regional travel, and the broader economy.

Lufthansa and Air France-KLM offer different futures for TAP

Lufthansa has made clear that a minority stake is enough to begin building value. Its view is that TAP can bring strategic benefits even without immediate control, especially by improving access to Latin America and Africa and adding a strong Southern European hub to its network.

Lufthansa has also argued that Lisbon would remain an important gateway within its system rather than being overshadowed by existing hubs.

Air France-KLM remains the other serious bidder after IAG stepped back. That leaves Portugal comparing two different network strategies, not just two financial offers.

One of the big background questions is alliance membership. TAP belongs to Star Alliance, where Lufthansa is already a leading member, while Air France-KLM is part of SkyTeam.

Lufthansa’s TAP move fits its wider Southern Europe strategy

Large airline groups are still looking for ways to strengthen their position through partial ownership and deeper network integration. That trend was already visible in Lufthansa’s move to expand its role in ITA Airways, showing that the group sees Southern Europe as an important part of its long-term strategy rather than a side market.

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