Lufthansa Group has submitted a bid for an initial minority stake in TAP Air Portugal, the company revealed on Wednesday.
The proposal was delivered to Parpública, the Portuguese state-owned investment company responsible for the privatization process. Lufthansa said the investment would establish a long-term partnership with its Star Alliance partner through an initial minority shareholding.
“Our interest in taking a stake in our Star Alliance partner TAP Air Portugal is the next logical step,” Lufthansa Group Chief Executive Carsten Spohr said.
Lufthansa said it intends to strengthen TAP’s position in the South Atlantic market and develop Lisbon into a strategic hub within the group’s network. Spohr cited SWISS, Austrian Airlines, Brussels Airlines and ITA Airways as examples of carriers that retained their national identities after joining Lufthansa Group.
Air France-KLM is also seeking to acquire a stake in TAP Air Portugal, setting up a contest between Europe’s two largest airline groups for a shareholding in the Portuguese flag carrier.
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Lufthansa has operated in Portugal for more than 70 years and currently offers 353 weekly flights to and from the country. The group employs more than 500 people in Portugal and expects that figure to exceed 1,000 by 2030 after opening a Lufthansa Technik components repair facility near Porto.
TAP is widely viewed as one of Europe’s most attractive airline assets because of its strong network between Portugal and Brazil, together with routes to North America, Africa and other destinations in Latin America. Lufthansa said the partnership would reinforce Lisbon’s role as an Atlantic hub and expand connectivity across those markets.
