What Happened
European Airlines Join Forces to Purchase Portuguese Carrier
Lufthansa Group and International Airlines Group (IAG) have entered the fray to purchase a minority stake in TAP Air Portugal, with the Portuguese government aiming to recover €3.2 billion in state aid. The privatization process is expected to be concluded by early 2026. The Lufthansa Group, which also owns SWISS, Brussels Airways, and ITA Airways, has expressed its interest in establishing a long-term partnership with TAP Air Portugal. IAG, which owns British Airways, Iberia, and Aer Lingus, has also sent a letter of interest to TAP Air Portugal owner, Parpública. The Air France-KLM Group has also formally expressed its intent to bid for a minority stake. The government has approved a decree to sell a 49.9% stake in the carrier, which would be the largest privatization in the airline’s history. According to Lufthansa, its airlines currently offer over 280 weekly flights to and from Portugal and employ over 400 skilled workers in the country. The Lufthansa Group highlighted that its airlines currently offer more than 280 weekly flights to and from Portugal and employ over 400 skilled workers in the country. The Portuguese government is seeking to recover the €3.2 billion in state aid provided to TAP Air Portugal during the COVID-19 crisis. The privatization process is expected to be concluded by early 2026. This article was first reported by AeroTime.