Lufthansa Expresses Interest in TAP Air Portugal Privatization Opportunity

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Lufthansa Expresses Interest in TAP Air Portugal Privatization Opportunity

Lufthansa Group has officially announced its intention to participate in the privatization of TAP Air Portugal. The airline aims to acquire a minority stake in the national carrier. This decision reflects Lufthansa’s desire to establish a long-term partnership with TAP to enhance the airline’s future and role within Portugal’s aviation market.

Partnership Objectives

On Thursday, Lufthansa expressed its support for the privatization process initiated by the Portuguese government. According to CEO Carsten Spohr, the group’s objectives include:

Strengthening Portugal’s global connectivity.
Preserving TAP’s Portuguese identity.
Ensuring sustainable growth for the airline.

This partnership aims to solidify Lisbon as a central hub in the Lufthansa network while enhancing TAP’s offerings and preserving its heritage.

Lufthansa’s Presence in Portugal

Lufthansa operates over 280 weekly flights to and from Portugal, marking a robust presence in the country for over 70 years. Currently, the airline employs more than 400 skilled workers locally. Plans are in place to increase this workforce to 1,000 by 2030 with the establishment of a Lufthansa Technik facility near Porto.

Competitive Landscape

The race for a stake in TAP Air Portugal is heating up, with other prominent players in the aviation industry also expressing interest. Air France-KLM has recently made its intentions clear regarding TAP’s partial privatization.

During a presentation in Paris, Air France-KLM CEO Benjamin Smith confirmed plans to submit a formal letter of intent by the end of the month. He emphasized the group’s commitment to participating in the upcoming phase of the privatization process.

Privatization Regulations

The Portuguese government has established regulations for the privatization. Key points include:

The State will retain a 50.1% stake in TAP.
A private investor can acquire up to 44.9% of the airline.
5% of the equity is reserved for TAP employees.

As the privatization process unfolds, TAP Air Portugal is poised for significant changes, with Lufthansa and Air France-KLM both keenly interested in securing their share of the airline’s future.