Lufthansa Group formally declared its intent to participate in the privatization of TAP Air Portugal, aiming to acquire a minority stake in the Portuguese flag carrier.
The group stated on Thursday that it seeks a long-term partnership with TAP to secure the airline’s future and reinforce its role in the national market.
A cooperation agreement would focus on enhancing Portugal’s global connectivity and maintaining TAP’s Portuguese identity, said the company.
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“The Lufthansa Group welcomes the Portuguese government’s privatization process. Our goal is to strengthen Portugal’s global connectivity, preserve TAP’s Portuguese identity, and ensure the airline’s sustainable growth,” said Carsten Spohr, CEO of the company.
Lufthansa CEO Carsten Spohr (Lufthansa)
Lufthansa Group’s airlines currently operate over 280 weekly flights to and from Portugal and have maintained a presence in the country for more than 70 years. The carrier employs more than 400 skilled personnel locally, with plans to expand its workforce to 1,000 by 2030 following the development of a new Lufthansa Technik facility near Porto.
A partnership would further consolidate Lisbon’s position as an Atlantic hub within the Lufthansa Group network.
Strong competition
The competition for a stake in TAP Air Portugal is expected to include other strong contenders. Air France-KLM recently announced its intention to participate in the partial privatization of TAP Air Portugal during the presentation of its third-quarter results in Paris.
Benjamin Smith, CEO of the Air France-KLM group, stated that the group has a clear intention to participate in the next phase of the process initiated by the Portuguese government. “We will present our formal letter of intent at the end of this month,” said Smith.
The Portuguese government approved legislation regulating the privatization of TAP, which stipulates that the State will retain a 50.1% stake, with up to 44.9% available to a private investor and 5% reserved for employees.
