Lufthansa, Air France-KLM to file final TAP bids September 30

Lufthansa and Air France-KLM will submit improved final bids for a stake in TAP on September 30, ECO has learned, in the final stretch of Portugal’s airline privatisation. The government plans to pick a winner within 15 days of receiving the offers.

The sale covers 44.9% of TAP’s capital, plus a further 5% set aside preferentially for employees. With the two offers seen as very close, the government invited both groups at the start of September into a three-week negotiation phase to submit best and final offers to Parpública, the state holding company handling the process.

Parpública will then prepare a final assessment to support the government’s decision, pointing to a choice by mid-October. Earlier this month, the government said the selected bidder would still be invited to a final round of negotiations.

Price is not the only factor in the decision. Lufthansa and Air France-KLM were also required to present a development strategy for TAP and an investment plan. According to the material provided, TAP’s appeal includes its strong position on Europe-Brazil routes, its airport slots in congested Lisbon and a renewed Airbus fleet.

After the winner is chosen, the process will still require contract approval by the Council of Ministers and regulatory clearances, including from the European Commission. That means the transaction is expected to close only in 2027, when the state would receive the payment and transfer the shares to TAP’s new partner.

Originally published at Eco.pt