Germany’s Lufthansa Group said on Wednesday that the Portuguese government has selected its offer in the privatisation of the national flag carrier TAP Air Portugal, paving the way for the group to acquire an initial minority stake.

Lufthansa said it has offered EUR 1.025 billion (about $1.2 billion) for a 44.9 percent stake in the airline. The price could rise to up to EUR 1.2 billion for a 49.9 percent stake because of up to 5 percent of shares initially offered to employees and a ticking fee, the group said in a statement on 14 October 2026.

The Portuguese government also announced it will start the process for the full privatisation of TAP, Lufthansa said. The group added that past acquisitions have shown a majority stake brings added benefits for all parties involved.

Lufthansa said it is now working with the Portuguese government and state holding company Parpública to finalise the transaction documents and expects to sign the agreements for the stake shortly. Completion remains subject to approval by the relevant authorities.

“TAP Air Portugal is a strong and profitable airline, our long-standing partner in Star Alliance, and internationally successful as a leading carrier on South Atlantic routes,” said Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG.

Spohr said the decision allows Lufthansa to pursue its internationalisation strategy and strengthen its position in the South Atlantic market. “We look forward to a shared future with TAP Air Portugal and to continuing our constructive cooperation with the government in Lisbon,” he said.

Lufthansa said its strategy is to support TAP’s growth while preserving its national identity and to strengthen Portugal’s connectivity, particularly with North and Latin America.

The group said it has been active in Portugal for more than 70 years. Its airlines currently operate 353 weekly flights to six Portuguese destinations, a 75 percent increase in capacity compared with 2019, it said.

More than 500 skilled professionals work for Lufthansa Group companies in Portugal, the statement said. With a new Lufthansa Technik maintenance site under construction in Santa Maria da Feira, near the northern city of Porto, where ground was broken in June, the number is expected to exceed 1,000 direct jobs by 2030.

The details of the deal come from Lufthansa’s statement. The statement did not quote the Portuguese government, and Aviation Express could not independently verify the terms.

Source: PR