Portugal’s government has selected Lufthansa as the winner of TAP’s privatisation process, according to CNN Portugal. The proposal currently on the table is a cash purchase of up to 49.9% of the airline for €1.2 billion.
The Council of Ministers approved the choice on Wednesday, and the prime minister announced it afterwards. Air France/KLM, the other bidder in the final stage, was not selected.
How the Share Sale Would Work
The proposal provides for Lufthansa to buy 44.9% of TAP, with another 5% offered to the airline’s workers. If workers do not buy that stake, Lufthansa can acquire it, bringing its holding to 49.9%.
In that case, Lufthansa would pay €1.2 billion, while the Portuguese state would retain 50.01%, according to the report.
Lufthansa also submitted an alternative offer to buy 100% of TAP. That proposal values the airline at €2.552 billion, including a premium of around €150 million for full control. It would also make the Portuguese state a shareholder in Lufthansa Group, with 5% of its capital.
The government views the full-sale proposal favourably, having included a 100% sale in its programme. However, it needs support in Parliament from either PS or Chega, which it currently does not have.
Fleet, Jobs and Worker Commitments
Lufthansa has committed to keeping TAP’s brand and Lisbon hub, and to respecting the company’s agreements with its workers.
It also promises to increase TAP’s fleet from its current 106 aircraft to 117 in 2035. The fleet would reach 130 aircraft after completion of the New Lisbon Airport. TAP had 99 aircraft on 31 December 2025.
The plans include transferring eight Lufthansa A350-900 aircraft to TAP after 2030 and modernising Portugália’s fleet.
Lufthansa already has an investment of around €300 million underway in Santa Maria da Feira, creating 700 jobs. That investment had previously been announced.
A new investment at the Military Aviation School in Tancos would create 200 jobs. Tancos would also gain a runway capable of handling both military and civilian operations.
Signing and Regulatory Approval
For Lufthansa, TAP’s main value lies in its Latin American operations. According to the report, integration with TAP would increase Lufthansa’s market share there from 9% to 20%.
The deal is expected to be signed by the end of this year. It would then await regulatory approvals, including European competition approval.
CNN Portugal reports that experience with previous transactions suggests the sale could be completed in June 2028.
Source: CNN Portugal: “Governo vende TAP à Lufthansa”, published 14 Oct 2026.
