Air France-KLM leads race for TAP with initial offer
Air France-KLM has become the first of the big three European airline groups to submit a non-binding offer for a stake in TAP Air…
April 2, 2026
Air France-KLM has become the first of the big three European airline groups to submit a non-binding offer for a stake in TAP Air Portugal.
The Franco-Dutch group said TAP was a “natural fit” with Lisbon acting as a “unique Southern European hub” for the company, offering connectivity across Latin America.
Air France-KLM first to announce offer for TAP
Air France-KLM is among three major European airline groups vying for a stake in TAP, which is undergoing a government-led privatisation. The Lisbon-based airline is offering a 44.9% stake to investors, with a further 5% reserved for employees.
Under the terms of the privatisation decree, the government has the option to sell its remaining 50.1% stake at a later stage to the investor acquiring the current minority holding.
IAG – the parent company of British Airways and Iberia – is also understood to be interested, as is Lufthansa Group. IAG already has a hub for South and Central America via Madrid, but the closest Lufthansa has is its new base in Rome via ITA Airways.
Executives at Air France-KLM have previously indicated that TAP could hold strategic value within the group. Lisbon offers unrivalled access to the Brazilian market, key for both TAP and Air France-KLM, as well as destinations in Africa.
TAP would also benefit, Air France-KLM said, including from its integration into the Air France, KLM and Transavia networks, and ties with Delta Air Lines and Virgin Atlantic.
Air France-KLM submits non-binding offer for minority stake in TAP Portugal
On Thursday, Air France-KLM announced the submission of a non-binding offer (NBO) to Portuguese state holding company Parpública. It makes the group the only candidate in the race to publicly set out its stall for an acquisition of the minority stake.
Benjamin Smith, CEO of the Air France-KLM Group, said: “We value what TAP has built over the last 81 years: a strong Lisbon hub, a strong brand, and a unique value proposition that provides connectivity and pride to millions of Portuguese people.
“We firmly believe that the next chapter of the airline’s history should be written as part of the Air France-KLM Group, building on this legacy and taking TAP to the next level.
“TAP is a natural fit within Air France-KLM’s multi-hub strategy, and our ambition is to strengthen the operations at Lisbon while developing connectivity in other cities across the country, including Porto. We look forward to the next steps of the privatisation process.”
Protecting the TAP brand important to Air France-KLM
Air France-KLM noted that it aimed to allow the airline to “stay true to its Portuguese heritage” and ensure connectivity for the Portuguese diaspora, a stipulation of the Portuguese government.
Air France-KLM put particular focus on its ability to preserve and grow the brand identities that it has within the group, as it did with KLM and as it says it will do with SAS. Lufthansa Group has faced criticism in the past for what some have said has been an erasing of airline brand identity for the carriers it has acquired.
IAG and the Lufthansa Group, which includes Brussels Airlines, Austrian Airlines and SWISS, are both thought to be eager to acquire a stake in TAP.
In December, IAG’s Chief Financial Officer described the fact that Portugal was only willing to sell 49.9% of the company as an “issue.”
IAG wants the Portuguese government to guarantee that should it be win the race for TAP, it would be able to increase its stake to around 100%.
The three airline groups need to submit their offers for the second round by 2 April, 2026. Lisbon wants to make a decision by the summer.
Middle Eastern carriers were supposedly also looking at an investment in TAP, though none of these materialised.
Featured image: rebius | stock.adobe.com
