The Portuguese government selected Germany's Lufthansa Group to acquire a minority stake in national airline TAP Air Portugal (Transportes Aéreos Portugueses). Under the privatization plan, Lufthansa will pay €1.2 billion for a 44.9% holding with an option to reach 49.9%, while the Portuguese state retains 50.1% of the shares with 5% reserved for airline workers. Lufthansa stated that the agreement will support TAP's expansion while safeguarding its brand identity and strategic flight routes to North and South America.
Update: Lufthansa to Pay Upfront Deposit for TAP Acquisition
Under the Council of Ministers' (Conselho de Ministros) resolution, Lufthansa must provide bank guarantees and pay an upfront deposit of 2.5%, amounting to up to €30 million, to the Portuguese state this year. Lufthansa Chief Executive Officer Carsten Spohr also confirmed plans to establish Lisbon as a primary European hub for flights to Brazil, routing transit traffic through the Portuguese capital instead of Frankfurt, Zurich, or Munich.
Update: German Union Criticizes Price as Diplomats Back Deal
German pilots' union Vereinigung Cockpit criticized Lufthansa for paying an exceptionally high price for TAP's minority stake, contrasting with Portuguese and German foreign ministers who praised the agreement as a geostrategic success. Portuguese Foreign Minister Paulo Rangel said the partnership strengthens transatlantic connections, particularly to Latin America.
