Lufthansa Selected to Buy Minority Stake in TAP
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.
TAP Air Portugal is Portugal’s flag-carrier airline, founded on 14 March 1945 as Transportes Aéreos Portugueses. It began operations in 1946 with Lisbon–Madrid and quickly opened the long “Linha Aérea Imperial” to Angola and Mozambique, symbolically linking mainland Portugal to its overseas territories. TAP entered the jet age in the 1960s, became Europe’s first all‑jet airline in 1967, and rebranded as TAP Air Portugal in 1979. Nationalised after the 1974 Carnation Revolution, it went through cycles of partial privatisation and renationalisation, remaining a strategic state‑controlled company due to its role in connectivity, tourism, exports, and the Portuguese diaspora, especially to Brazil, Africa, and North America. Today TAP operates an all‑Airbus fleet from its Lisbon hub, marketing itself as a bridge between Europe, Africa, and the Americas and as a key economic and symbolic asset for Portugal.
The Council of Ministers (Conselho de Ministros) is Portugal’s national cabinet where the prime minister and ministers meet to approve government decisions, laws and emergency measures. In crises it can decide on declarations such as a state of calamity and the measures that follow; those decisions are then published in the Diário da República. Residents should note that a Council declaration can unlock national aid, resources and civil protection support for affected municipalities.
