Latest: IAG asks Portuguese government for full ownership of TAP
February 7, 2026
The three large airline groups of Europe – Lufthansa, IAG and Air France-KLM – have all submitted bids to acquire a stake in TAP Air Portugal. In the second round of bids that need to be submitted by April 2026, IAG hopes to be a little more ambitious. It does not want a simple minority stake in the carrier, but rather full or majority ownership.
This was first hinted at by the group’s Chief Financial Officer Nicholas Cadbury in December 2025. This is now expected to materialise in more concrete terms, as the company approaches the Portuguese government for clarity on whether that might be possible. The government has previously been unwilling to sell that much of TAP Air Portugal – hence why it offered 49% of the company to the market.
It is not clear where IAG stands should it not be able to secure majority ownership of the airline. Indeed, IAG’s acquisition model has been one of full or majority ownership, as it did with Aer Lingus and Vueling for instance.
IAG wants majority ownership of TAP Air Portugal
In December, International Airlines Group’s Chief Financial Officer described the fact that Portugal was only willing to sell 49.9% of the company as an “issue.”
Portugal is trying to privatise its national airline, selling 44.9% to a foreign airline group and keeping 5% for employees. The foreign airline partner would have to ensure the company’s position in Portugal, maintaining vital connectivity from both Lisbon and Porto – its two biggest cities.
IAG says that it wants to increase the company’s margins from the current 8% to the 12-15% group-wide target.
Cadbury said: “To do that, we would need a real clear path to ownership, full ownership or majority ownership, and at the moment that is not on the table. If we can’t do that, it’s going to be a very difficult deal to do.”
IAG wants guarantees that it can get majority ownership
In a report earlier this week published by Expansión, it emerged that 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 take a decision this summer.
IAG believes that the only way for it to effectively reach its anticipated margins with TAP and grow the company is through total control. It has reportedly asked the Portuguese government to allow it to not only increase its participation beyond 50%, but to approach full control.
A key point to this request is that it ensures that no other foreign airline enters the capital of TAP Air Portugal.
TAP Air Portugal’s value lies in South America
All three airline groups want to get a piece of TAP Air Portugal as a way to increase market share on the Europe-South America sector. The company maintains strong links between its Portuguese hubs and Brazil, as well as Portuguese-speaking African countries such as Angola.
For the International Airlines Group – which already leverages Madrid-based Iberia for its own South America operation – a TAP investment would pave the way for a dual-hub strategy in the south of the European continent.
Lufthansa and Air France-KLM lag behind in South American market share. While Lufthansa hopes to develop its new ITA Airways subsidiary into a credible competitor in the South Atlantic, the path to full ownership will take some time.
Ryanair’s CEO Michael O’Leary has previously predicted that TAP will end up being taken by IAG.
Featured image: VanderWolf Images | stock.adobe.com
