Lufthansa CEO says TAP interest is very strong in race with Air France-KLM

• Portugal is selling a 44.9% stake in TAP to a strategic airline partner, with an additional 5% reserved for employees, after deeming initial offers from both Lufthansa and Air France-KLM 'largely equivalent and very ambitious'
• Lufthansa is building on its multi-hub European strategy following acquisitions of SWISS, Austrian Airlines, Brussels Airlines, and Italy's ITA Airways
• Lufthansa Technik Portugal will open an aircraft engine maintenance plant in Santa Maria da Feira in 2028, demonstrating the company's commitment to Portugal beyond the TAP acquisition

Lufthansa Competes with Air France-KLM for TAP Portugal Stake

Lufthansa is pursuing a minority stake in Portugal's flag carrier TAP, positioning itself as a strong contender against Air France-KLM in the privatization process. CEO Carsten Spohr confirmed the German airline group's "very strong" interest on Monday, emphasizing Portugal's potential as a key strategic partner.

Deal Structure and Timeline:

The Portuguese government is selling a 44.9% stake in TAP to a strategic airline partner, with an additional 5% reserved for employees. The privatization, relaunched in July after delays, expects completion by early September. Both Lufthansa and Air France-KLM submitted initial offers deemed "largely equivalent and very ambitious" by the government across strategic, industrial, and financial metrics.

Strategic Rationale:

TAP's primary attraction lies in its valuable slots connecting Lisbon with Brazil, Portuguese-speaking African nations, and the United States. This aligns with Lufthansa's multi-hub European expansion strategy, which has included acquisitions of SWISS, Austrian Airlines, Brussels Airlines, and most recently Italy's ITA Airways.

Broader Investment in Portugal:

Demonstrating long-term commitment, Lufthansa announced plans for a maintenance hub in northern Portugal. Lufthansa Technik Portugal will establish a plant in Santa Maria da Feira focused on aircraft engine component maintenance and overhaul, with operations expected to begin in 2028.

Spohr emphasized that previous acquisitions strengthened partner airlines while preserving their identities and expanding their hubs, suggesting a similar approach for TAP if successful. The final decision rests with the Portuguese government, with both airline groups positioning themselves as viable partners for TAP's global expansion.