The die is cast. Today (14OCT26), the Portuguese government announced that it has chosen the Lufthansa Group as a shareholder and strategic partner of TAP Air Portugal. The government owns the airline through the state-owned holding company, Parpública. Lufthansa had bid EUR 1,201 billion to acquire a 49.9% stake in the airline. Rival Air France-KLM, by contrast, offered EUR 1,038 billion – EUR 163 million less than Lufthansa.
With TAP, the Lufthansa Group is expanding its portfolio, which already includes Swiss Air Lines, Austrian Airlines, Brussels Airlines, and ITA Airways, in addition to regional airlines such as Eurowings. Management at the Group’s headquarters in Frankfurt reacted with delight to the Lisbon rulers’ decision, as announced by CEO Carsten Spohr:
‘Looking forward to a shared future’ – Spohr
“The Portuguese government’s decision […] allows us to consistently pursue our internationalization strategy and sustainably strengthen our position in the South Atlantic market. Our company has enjoyed a close and trusted partnership with Portugal for many years. For decades, we have invested in the country, created and secured highly skilled jobs, and connected Portugal with Europe and the world. We look forward to a shared future with TAP Air Portugal and to continuing our constructive cooperation with the government in Lisbon!”
For its part, the Portuguese government points out that “Lufthansa’s proposal includes preserving the brand, the headquarters in Portugal, and the hub in Lisbon, as well as developing operations in Porto, expanding in Porto, expanding the fleet, and strengthening the Maintenance & Engineering division.”
Technical services – a door opener
In addition to the Lufthansa Group’s higher bid compared to Air France–KLM, the MRO aspect seems to have played an important role in the decision favoring Lufthansa’s offer.
This is because its subsidiary, Lufthansa Technik Portugal (LTPT), incepted in 2024, is currently setting up a facility near Porto for aircraft repair services and engine overhauls. The cornerstone for the technical shop was laid on 29JUN26, attended by the Portuguese Prime Minister, Luís Montenegro, and Lufthansa CEO, Carsten Spohr. The 55,000 m² facility is scheduled to be fully operational in 2028, providing up to 700 skilled jobs.
As for the partnership with TAP, Lufthansa has made it clear that it will take over TAP’s leadership and operational management. It has also committed to maintaining Lisbon as a hub. By 2035, Lufthansa plans to expand the TAP fleet to 117 aircraft. Following the opening of a planned new major airport in Lisbon, the fleet is expected to grow to 130 aircraft.
Strong presence in Brazil
TAP is particularly attractive for Lufthansa because of its dense network to Brazil and neighboring countries. This applies to both passenger and cargo traffic, especially in Brazil, where TAP Cargo has established a strong position. Compared to IAG (British Airways / Iberia) and Air France-KLM, though, Lufthansa has a significantly smaller market share in South Atlantic traffic (IAG 20%, Air France-KLM 17%, Lufthansa 9%). This is likely to change once TAP becomes a full group member.
The review by the competition authorities may take longer
However, it might be some time before the deal closes. Due to increasing market concentration in South Atlantic traffic and capacity constraints at Lisbon Airport, the competition watchdog’s review is expected to take longer. Officially, the Portuguese government anticipates it will take up to two years for the Brussels controllers to reach a final decision.
In 2025, TAP posted a net profit of EUR 4.1 million and carried 16.7 million passengers. The company has not yet published any cargo figures for the full year.
