Latest news and stories about airline industry in finance in Portugal for expats and residents.
As the deadline for non-binding bids for TAP's privatisation arrives, major European airline groups face a shifting economic landscape, with Lufthansa confirming its continued interest despite broader sector challenges.
Lufthansa confirms its intent to submit a proposal for the privatisation of TAP, aiming to expand the Lisbon hub and develop Porto as a secondary hub while seeking eventual management control.
IAG, the owner of Iberia and British Airways, has announced it will not submit a non-binding bid for TAP, effectively withdrawing from the process. An official source told Lusa that after careful consideration, IAG decided it was not in the best interest of its shareholders to pursue a stake in TAP, choosing instead to prioritise growth opportunities within its existing brands and asset-light developments. The race for TAP's privatisation now continues between Air France-KLM and Lufthansa, as IAG confirmed that its strategy requires a path to full ownership, which the current sale of a minority stake does not provide.
Pressed by the impact of the war in the Middle East, the IAG group has withdrawn from the race to buy TAP, Expresso has learned. Air France-KLM and Lufthansa are the only two remaining candidates.
Lufthansa confirmed this Thursday that it has submitted a non-binding offer for TAP, as part of the ongoing privatisation process.
“We confirm that we have submitted a non-binding offer for TAP Air Portugal,” an official source from the German group told Lusa.
Home News Air France-KLM submits offer to buy TAP Air France-KLM submits offer to buy TAP Air France-KLM has submitted a non-binding offer to buy a minority stake in TAP Air Portugal, the group announced.
The period for submitting proposals to acquire the airline TAP concludes at 11 pm this Thursday.
Lufthansa, Germany’s largest airline and one of the leading carriers in Europe, has said that it will not give up on TAP Air Portugal, confirming it will submit a non-binding The post Lufthansa confirms non-binding bid for TAP appeared first on Portugal Resident.
Michael O'Leary highlighted that Ryanair is “reasonably well protected,” as it has approximately 80% of its fuel purchased in advance until March 2027.
Lufthansa guarantees it will not give up on TAP and confirms it will submit a non-binding proposal by Wednesday, arguing that it is the partner with the greatest capacity to develop the Portuguese airline.
The privatisation of TAP will move forward despite the rise in jet fuel prices. The risk of the group combining Iberia and British Airways withdrawing does not currently affect the interest of Lufthansa and Air France-KLM in the Portuguese airline.
IAG Group, owner of British Airways and Iberia, maintains the possibility of submitting a proposal for the privatisation of TAP until early April and has not confirmed any final decision regarding its participation. On Friday, Bloomberg reported that the group was inclined not to proceed with an offer, citing sources close to the matter, and IAG indicated that day that, “in accordance with the process, it has until April 2nd to submit an offer.” On Monday, an official company source reiterated this position to Lusa. According to sources cited by Bloomberg, IAG believes that Portugal's option to sell only a minority stake in the airline does not fit the group's strategy. The tender specifications provide for the sale of up to 44.9% of TAP's capital, with 5% reserved for employees. In addition to the owner of Iberia, Air France-KLM and Lufthansa have also expressed interest in the privatisation. Non-binding proposals must be submitted to Parpública by April 2nd and must include a financial component, such as the price offered for shares and future valuation mechanisms (earn-outs). Interested parties must also present industrial and strategic plans, synergies, and guarantees to preserve TAP's status as a European Union air carrier. IAG believes TAP could be successful within the group if the “terms are appropriate.”
Captain José Correia Guedes analyses how the conflict in the Middle East is affecting airlines.
IAG announced in November that it was interested in acquiring a minority stake in the Portuguese airline.
