Lufthansa Plans 19.9% Stake in TAP Air Portugal
Lufthansa is reportedly expressing strong interest in acquiring a 19.9% stake in TAP Air Portugal as the Portuguese government prepares to privatize the national airline. Lufthansa Group CEO Carsten Spohr has been in discussions with senior Portuguese officials about the potential acquisition, signaling the German airline’s serious intent.
TAP Air Portugal was re-nationalized in July 2020 when the Portuguese government regained majority control of the airline by buying out the shares held by U.S. airline investor David Neeleman. Neeleman had led a consortium called Atlântico Gateway, which acquired a 45% stake in TAP Air Portugal in 2015 with the goal of turning the struggling airline around. However, the COVID-19 pandemic forced the Portuguese government to bail out the airline, leading to Neeleman’s exit amid controversy.
Since TAP Air Portugal returned to profitability—posting a €177 million profit on €4.2 billion in revenue in 2023—the Portuguese government announced its plan to sell the carrier to private investors. The airline’s strong transatlantic operations out of Lisbon and its significant presence in Brazil have drawn interest from major European airline groups, including Lufthansa, Air France-KLM, and IAG.
The privatization process could begin as early as the first quarter of 2025, with the Portuguese state potentially selling between 51% and 100% of the airline. The 19.9% stake Lufthansa is considering could be valued at between €180 million and €200 million.
If Lufthansa secures a stake in TAP Air Portugal, it would mark the airline group’s second major acquisition in southern Europe within two years. In July 2024, Lufthansa received approval from the European Commission to acquire a 41% stake in Italian carrier ITA Airways, gaining effective control of the airline. Lufthansa also has the option to purchase the remaining shares of ITA Airways in 2025.
This strategic move to acquire a stake in TAP Air Portugal aligns with Lufthansa’s broader ambitions to expand its presence in southern Europe and strengthen its position in key transatlantic markets. TAP Air Portugal’s robust network in Brazil and other Portuguese-speaking countries offers Lufthansa a valuable opportunity to enhance its global reach.
As the privatization of TAP Air Portugal progresses, the airline’s future ownership structure will play a crucial role in shaping its strategic direction and competitive positioning. Lufthansa’s potential investment could be a pivotal moment for both the German airline group and TAP Air Portugal, as they navigate the evolving landscape of European aviation.
Related news: https://www.airguide.info/?s=TAP+Air+Portugal
Sources: AirGuide Business airguide.info, bing.com, Lufthansa Group, TAP Air Portugal