Air France-KLM enters privatization process for Portuguese airline TAP
Air France-KLM has submitted a non-binding offer for a minority stake in TAP Air Portugal, as Portugal moves ahead with plans to partially privatize its state-owned airline. A deadline for initial non-binding offers expires later Thursday.
TAP is currently fully owned by the Portuguese state. The government is seeking to sell up to 49.9 percent of the carrier. Neither the size of Air France-KLM’s proposed stake nor the value of its offer has been disclosed.
The Portuguese government had initially considered selling 100 percent of TAP but later declared a preference for privatizing only 49 percent of the airline.
The bid is part of an initial phase in the privatization process. The Portuguese government will review the proposals and then allow selected bidders to proceed to a second stage, in which they will have 90 days to submit binding offers.
Air France-KLM’s interest in TAP had been previously reported. The group views Lisbon as a strategic hub in southern Europe with the potential to expand long-haul connectivity, particularly to North and South America. TAP already operates a strong network in Brazil, maintains a significant presence in Africa, and also serves destinations in North America.
Other major European airline groups are also involved in the process. Lufthansa and IAG, the parent company of British Airways and Iberia, have been invited to participate in the bidding round.
TAP has long-standing operations in Portugal, dating back to 1940. It holds roughly 45 percent of the France–Portugal air travel market, supported in part by Transavia France, which operates a significant share of routes.
