The privatization of TAP enters its final stretch with the proposals from Lufthansa and Air France-KLM

The sale of 44.9% of TAP enters its decisive phase with Lufthansa and Air France-KLM as the only contenders and a new strategic plan until 2035.

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The operation to sell 44.9% of TAP Air Portugal has entered its decisive phase after the public company Parpública has sent the Executive the description and analysis of the binding offers submitted approximately a month ago by the Lufthansa Group and Air France-KLM.

"The Government will now analyze the document and will issue a statement regarding it in due time, in order to advance the process," according to a statement from the Portuguese Ministry of Finance, as reported by "Bloomberg".

The Government's plan involves studying the report in an upcoming council of ministers meeting and, from there, designating the buyer in the following weeks. The terms include the possibility of opening a final round to gather improved proposals and final offers, if deemed appropriate.

The two competing groups have emphasized their investment and growth projects for TAP. Lufthansa has highlighted its presence in Portugal, where in June it began construction of new facilities near Porto intended for the repair of engine components and other aeronautical parts.

Air France-KLM, for its part, has expressed its intention to establish new maintenance centers in Portugal if it prevails in the process.

The partial sale procedure of TAP, reactivated by the Government in 2025, was ultimately limited to these two candidates after the withdrawal of the IAG group, parent of Iberia, Vueling, or British Airways.

IAG justified its exit from the process by stating that, "in any acquisition process, it needs a way to achieve total ownership in order to manage and transform the business".

In parallel, this Monday TAP announced a net loss of 99.2 million euros in the first half of 2026, a 40.3% year-on-year increase caused by the rise in fuel costs, despite having achieved a new historical maximum in both revenue and number of passengers transported.

During the first half of the year, the Restructuring Plan was also concluded and the new Strategic Plan 2026-2035 was launched, which will outline the airline's roadmap for the next decade. This plan is supported by the strengthening of long-haul routes, the differentiation of the offer, the diversification of additional revenue sources, and a profound digital transformation articulated through the Horizon Program.

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