Air France-KLM and Lufthansa submit final bids for TAP
3 min read
Air France-KLM and Lufthansa Group have submitted improved, final offers for a stake in TAP Air Portugal, with the former’s CEO penning an open letter explaining his reasons for the bid.
The latest stage in the TAP saga has intensified the contest for Portugal’s flag carrier, which has been playing out for several months.
TAP Air Portugal sale nears conclusion
The government in Lisbon is poised to select a preferred bidder for the airline later this month.
Both airline groups delivered revised proposals to state holding company Parpública on 30 September.
The Portuguese government is selling up to 49.9% of its airline. Under the terms of the privatisation agreement, the remaining 50.1% stake in TAP can be sold at a later stage to the investor acquiring the minority holding.
Air France-KLM pitches Lisbon as exclusive southern hub
Air France-KLM chief executive Ben Smith has made a public appeal for his group’s proposal.
Writing in an open letter published on his Linkedin profile, Smith said: “Portugal is rightly proud of its national airline. I am convinced that Air France-KLM offers TAP the best path towards a strong future and that, together, we can achieve great things.”
Smith said he wanted to “make Lisbon our exclusive Southern European hub. Portugal’s unique geographical location makes our networks a natural fit.”
He also promised to protect the Portuguese identity of the airline: “TAP’s brand and Portuguese spirit are truly one of a kind. Our ambition is to bring out the very best of Portugal and showcase it to the world.”
He said the acquisition would bring TAP into the wider Air France-KLM network alongside Air France, KLM and Transavia, with particular emphasis on expanding transatlantic connectivity.
TAP holds one of the strongest Europe-Brazil networks of any European airline, making its position in the Brazilian market a key attraction for prospective buyers.
The group has said its offer is intended to support Portugal’s aviation industry while retaining TAP’s role as the country’s flag carrier.
Signing off with a handwritten note in Portuguese, Smith added: “Obrigado a todos (Thank you all). Espero vê-los novamente em breve. (I hope to see you all again soon).”
Lufthansa highlights airline integration record
Lufthansa has also presented its revised bid as a long-term commitment to TAP and Portugal.
The German group argues that its experience developing network airlines would help TAP expand, improve its competitiveness and preserve its position as Portugal’s national carrier.
Its airline portfolio includes SWISS, Austrian Airlines, Brussels Airlines and ITA Airways.
However CEO of the group, Carsten Spohr, has yet to follow suit with an open letter of his own.
Neither bidder has disclosed the full financial terms of its revised proposal.
Parpública will now prepare an assessment of the improvements made by both groups before submitting its findings to the government.
Portuguese infrastructure minister Miguel Pinto Luz has indicated that a preferred bidder is expected to be identified by mid-October.
