Portugal’s government on Friday asked Air France KLM and Lufthansa to improve their offers for a minority stake in national carrier TAP after deciding that the two bids were too close to choose between them.
Cabinet Minister Antonio Leitao Amaro said both airline groups had submitted binding offers in July for a 44.9% stake in TAP, with the government seeking a strategic partner to help expand the airline’s international operations and competitiveness.
Following an assessment by state holding company Parpublica, the government concluded that the offers differed in some areas but were broadly similar overall.
“We decided to launch a final round of negotiations lasting a few weeks, during which we expect the bidders to improve their offers,” Leitao Amaro told reporters after a cabinet meeting.
Portugal relaunched TAP’s long delayed privatisation in July 2025. The government has reserved another 5% stake for employees, while the successful bidder will have the option to acquire any shares not taken up by staff.
TAP is considered attractive because of its strong connections from Lisbon to Brazil, Portuguese speaking African countries and the United States. The routes are particularly important to Portugal’s diaspora, tourism and investment links.
The government has also required the future strategic partner to support TAP’s expansion across the country, including operations in Porto, Faro, the Azores and Madeira.
Under the privatisation plan, the government could eventually sell its remaining 50.1% stake to the strategic investor.
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