TAP targets defence to expand maintenance business
TAP says rising defence spending in Europe could help grow its maintenance unit, with the airline also seeing privatisation as a possible accelerator.
TAP is looking to defence as a new growth path for its maintenance business, telling ECO it sees “notable opportunities” in rising military spending in Europe. The move matters because maintenance and engineering has become an increasingly profitable part of the Portuguese airline, and the company says its partial privatisation could help speed up that expansion.
The airline said the future of TAP Maintenance & Engeneering (M&E) will involve support for Portugal’s national defence and collaboration in international programmes through strategic partnerships in Europe. It plans to build on decades of experience in component maintenance, landing gear and auxiliary power units for both aircraft and helicopters, while engine maintenance is also being assessed. TAP said it has developed contacts with institutional and industrial partners in the sector in Portugal and abroad.
Defence work is not new for the company. TAP said it has had a NATO contract since 1987, initially covering modifications to B707-E3 AWACS aircraft and later extending to engine overhauls, landing gear and other hydraulic components. The airline added that its defence-related activity also includes equipment and tool calibration, machining and electrolytic treatment of parts, and said it previously held a defence contract with a European country’s ministry for more than 10 years involving two Airbus A340 aircraft, pilot training, operational support and full maintenance.
The push comes as TAP’s maintenance and engineering business has gained weight in the group’s results. Revenue almost doubled between 2022 and 2025 to €262 million, equivalent to 6.1% of TAP’s total revenue, while the unit accounted for 12.4% of operating profit, with a 12.1% margin versus 5.6% in air transport last year. TAP is also investing €20 million in a new maintenance hub at Porto airport due to start operating in 2028, and is studying a new unit in the Lisbon area.
TAP told ECO that privatisation could help accelerate its defence ambitions. Expanding maintenance and engineering is one of the requirements in the tender for the sale of 49.9% of the airline, and TAP said the two bidders, Air France-KLM and Lufthansa, both have well-established defence maintenance operations. According to the airline, bringing in one of those strategic partners could strengthen TAP M&E’s commercial capacity and competitive position in the defence segment.
Originally published at Eco.pt