Lufthansa chosen as private investor in Portugal’s TAP
Portugal expects €1.201 billion from the first phase of the privatisation, with the state retaining majority ownership.
Lufthansa has been selected to become a shareholder in TAP, Portugal’s government announced following its cabinet meeting on 14 October 2026. Prime minister Luís Montenegro said the German group would run the airline’s executive and operational management, while the state would retain 50.1 per cent.
Montenegro put the first-phase proceeds at €1.201 billion, with the offer valuing TAP at €2.552 billion overall. He said Lufthansa’s bid was 16 per cent above its competitor’s and presented less uncertainty.
State holdings company Parpública said the final bids from Lufthansa and Air France-KLM arrived at the end of September, each seeking 44.9 per cent of TAP. Employees have a separate allocation of 5 per cent. The privatisation decree-law permits the chosen investor to acquire any shares left unbought by staff.
Completion remains subject to authorisation by the European Commission’s Directorate-General for Competition. Finance minister Joaquim Miranda Sarmento said the process would take 18 to 24 months to conclude, placing completion in 2028.
Infrastructure and Housing minister Miguel Pinto Luz outlined plans for TAP to have 117 aircraft by 2035, then 130 after 2035. Transfers of up to eight Airbus A350-900s to the airline are also due from 2030 onwards.
The proposal includes €500 million for three projects: pilot training in Tancos, an Aveiro innovation centre and a centre for corporate services. These would supplement Lufthansa Technik’s previously announced Santa Maria da Feira investment. Montenegro envisaged 3,000 jobs linked to TAP’s projected expansion and 5,500 direct and indirect jobs across the investment initiatives.
Airport spending is also envisaged at Francisco Sá Carneiro Airport, identified as the operation’s strategic base, and at Faro and airports serving the Autonomous Regions.
