Air France-KLM and Lufthansa submit non-binding bids in TAP privatization
The French-Dutch partnership and the German group told ECO they have submitted bids for a minority stake in portuguese airline TAP. IAG has shown interest, but reports say it prefers majority.
Air France-KLM and Lufthansa have submitted anon-binding bids to Parpública on Thursday as part of the privatisation of TAP.
The Franco-Dutch group has reiterated its “continued and strong” interest in the Portuguese airline. “We firmly believe that the next chapter in this airline’s history should be written as part of the Air France-KLM Group, building on this legacy and taking TAP to a new level”, said CEO Benjamin Smith, quoted in a statement.
“TAP fits perfectly into Air France-KLM’s multi-hub strategy, and our aim is to strengthen operations in Lisbon, whilst developing connectivity in other cities across the country, including Porto”, he adds.
The group, which is 28% owned by the French state and 9.1% by the Dutch state, highlights its “extensive experience of working with state shareholders”. “We believe this partnership experience is a testament to the strategic importance of aviation for a nation”, he adds. This will also be the case for TAP, as this phase of privatisation covers only 49.9% of the capital, of which 5% is allocated to employees.
Air France-KLM highlights the “ideal geographical location” of Lisbon Airport, which would be the group’s “sole hub” in southern Europe, with “extensive connectivity” to “the Americas – including Brazil, a key market for both TAP and Air France-KLM – and to Africa”. In addition to Air France and KLM, the group operates the low-cost carrier Transavia and holds a 20% stake in SAS.
He also highlights TAP’s integration into the transatlantic partnership with Delta Air Lines and Virgin Atlantic. “Given that TAP and Air France-KLM operate highly complementary networks, Portugal as a whole would benefit from increased air connectivity”, he emphasises.
The group emphasises cooperation across all business areas, including a “focus on decarbonisation”, and assures that TAP will remain “true to its Portuguese heritage whilst enhancing its distinctive identity on the global stage”.
Lufthansa also confirms submission of a bid for TAP
Following Air France-KLM, the Lufthansa Group also submitted a non-binding bid for the acquisition of a minority stake in the privatisation of TAP, thus becoming the second contender in the race for the Portuguese airline.
“We can confirm that we have submitted a non-binding bid for TAP Air Portugal,” said an official source in response to ECO. The German group had already made public its intention to remain in the process of selling the Portuguese airline. “We intend to make a non-binding offer this week”, said Tamur Goudarzi-Pour, the executive director responsible for the group’s strategy, in a conversation with Portuguese journalists on Monday.
The German group, which also includes Swiss, Brussels Airlines and Austrian Airlines, aims to add TAP to its portfolio, seeing the Portuguese airline as a springboard for growth in South America, particularly in Brazil. “We are already in Brazil, but with TAP we become a major force”, emphasised Tamur Goudarzi-Pour.
It also intends to expand TAP’s operations at Lisbon Airport, taking advantage of its expansion, and to make Porto Airport a second hub for the Portuguese carrier, increasing connectivity and long-haul flights.
IAG, the group which controls British Airways and Iberia among other airlines, had expressed interest, but reports have indicated that it may not present a bid, as it would prefer to have a majority stake in TAP.
