The Portuguese government is prepared to move to the next phase of the privatization process for TAP SA, the nation’s flag carrier. According to individuals familiar with the proceedings, state holding company Parpública has recommended that non-binding bids from Air France-KLM and Deutsche Lufthansa AG proceed to the due diligence stage.
Parpública, which manages the state’s equity holdings, recently submitted its evaluation of the initial offers to the Ministry of Finance. The recommendation suggests that both European airline groups met the preliminary criteria to vie for a minority stake in the carrier. The Portuguese cabinet is expected to formally review and vote on this recommendation during its scheduled meeting on Thursday, April 23, 2026.
Under the current privatization framework, the Portuguese state intends to sell a maximum of 49.9% of TAP SA. The plan includes a mandatory provision where a 5% stake is first reserved for the airline’s employees, leaving the remaining portion available for the selected strategic partner. This structure allows the government to retain a majority interest while securing the capital and scale necessary for the airline's long-term operations.
TAP SA is considered a strategic asset due to its extensive flight network connecting Europe to South America—particularly Brazil—and Africa. These routes are highly valued by both Air France-KLM and Lufthansa as they seek to consolidate their presence in the transatlantic and southern hemisphere markets. TAP currently operates a fleet of 103 aircraft, the majority of which are Airbus SE models. This includes a significant number of A320-family narrow-body jets and long-range A330neo and A321LR aircraft, which allow the airline to serve mid-to-long-haul routes efficiently from its Lisbon hub.
The transition to the next stage will allow the shortlisted bidders to conduct comprehensive due diligence on TAP’s financial records, debt obligations, and operational assets. Following this period, which is expected to last approximately three months, the companies will be invited to submit binding offers. The government has emphasized that the selection process will prioritize the preservation of the Lisbon hub and the airline's contribution to the national economy.
Founded in 1945, TAP has undergone several shifts in ownership structure over the last decade. The airline was partially privatized in 2015 before the state increased its stake to 72.5% in 2020 during a restructuring process necessitated by the global pandemic. Government officials have argued that integration into a larger aviation group is essential for TAP to achieve the scale required to compete in the modern aviation landscape.
Representatives for Air France-KLM and Lufthansa have not issued formal statements regarding the advancement of their bids. Spokespeople for the Portuguese government and Parpública declined to comment on the specifics of the confidential bidding process.