No sign of the Middle East: Only Europe’s big 3 airline groups submitted offers to buy TAP Air Portugal
November 23, 2025
Despite earlier reports of Middle Eastern carriers expressing an interest in acquiring a minority stake in TAP Air Portugal, none submitted formal offers. According to Portugal’s Parpública – the country’s National Wealth Fund – only Europe’s big three airline groups formally entered the bidding process.
Air France-KLM, the International Airlines Group and the Lufthansa Group all sent letters to the Portuguese government indicating their interest in TAP Air Portugal. The government is in the process of selling 49.9% of the company, of which 5% is to go to staff.
For the remaining 44.5%, the government is seeking a long-term airline partner to support TAP’s expansion plans and ensure connectivity to and from Portugal.
Europe’s big 3 airlines submit bids
Though Parpública did not name the companies that formally expressed interest, it said that three entities did so. Europe’s big three all confirmed earlier this week that they had in fact sent letters of interest which were due by Saturday.
Due diligence is expected to begin for qualified investors as of January, with the deadline for non-binding offers on 1 April. Binding offers, the process terms state, are due three months later.
In July, Portugal’s Prime Minister Luis Montenegro said that major airlines outside the European Union had expressed an interest (informally) in TAP Air Portugal. Then, earlier this week, it emerged that Middle Eastern airlines were in discussions with the government.
One name that surfaced on several occasions, according to sources speaking to Italy’s Corriere della Sera on the condition of anonymity, was Qatar Airways.
Why does Portugal want to sell TAP?
The Government of Portugal is seeking to sell a minority stake in TAP for several reasons. It – and the airline itself – believes that it requires a larger partner to support it as competition in Europe and beyond remains intense.
Data from aviation analytics firm Cirium shows that although TAP controls about half of the seats flown out of its Lisbon hub, Ryanair and easyJet combined make up just under 20%. Across Europe more broadly, a competitive aviation landscape puts pressure on yields.
The decision is also financial. Portugal invested roughly €3.2 billion euros in the company relating to COVID-19 struggles. By selling a stake in TAP, it hopes to recover some of the money it spent.
As it sells the airline, the government has several conditions. The partner must:
- Preserve the TAP brand
- Grow the airline’s fleet
- Maintain its network to Portuguese-speaking countries including in South America and Africa
- Invest in local sustainable aviation fuel projects
- Continue flying out of Lisbon and Portugal’s secondary airports (Porto, for instance)
Following the approval of the decree by the Council of Ministers, the document has to be signed into law by the country’s president. If the bill is approved, interested parties will have 60 days to prequalify. After that, potential investors will be given 90 days to submit non-binding proposals.
TAP’s added value
TAP’s network in South America, particularly Brazil, is of great interest to Europe’s big three airline groups. IAG for its part already has control over the continent, and any investment in TAP would further cement its role as the primary operator to the South Atlantic.
This is precisely where Lufthansa and Air France-KLM see an interest, allowing them to counter IAG’s growth while expanding in a generally profitable market.
As mentioned, TAP also controls the majority of Lisbon’s seat share and elusive slot capacity. Slots at Lisbon’s Humberto Delgado airport are hard to come by, so much so that TAP has begun expanding long-haul operations out of Portugal’s second-largest city, Porto, which has more available space.
Featured image: Markus Mainka | stock.adobe.com
