TAP Air Portugal Sparks Bidding War, Air France-KLM Leads

Air France-KLM Group has announced its intention to bid for a minority stake of 44.99 percent in TAP Air Portugal.

This follows the government-approved decree in August 2025, which authorized the sale of up to 49.9 percent of TAP Air Portugal to investors.

Through privatization, Portugal is attempting to recover €3.2 billion (approximately $3.7 billion) in state aid provided to TAP during the COVID-19 pandemic.

Air France-KLM has confirmed it reviewed the official privatization terms and will submit its bid by the deadline of November 22, 2025.

This move positions Air France-KLM at the forefront of the competitive bidding process alongside other major European airline groups, including Lufthansa and International Airlines Group (IAG).

TAP’s Lisbon hub serves as a crucial gateway to regions where Air France-KLM seeks to strengthen its presence: Southwest Europe, Brazil, Portuguese-speaking African countries, and the US.

The Portuguese government plans to allocate a 5 percent stake to TAP employees and reserve a share of ownership for internal stakeholders.

Just three days ago, Air France-KLM announced a new codeshare agreement with Scandinavian Airlines and revealed plans to boost its ownership stake by Q3 2026, ultimately converting SAS into a subsidiary.

Photo by Henry Möllers on Unsplash