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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.
A strike by Lufthansa group cabin crew, called by the UFO union, has led to the cancellation of hundreds of flights in Germany as many travellers return from Easter holidays. The strike, which officially affects Lufthansa departures from Frankfurt and Munich and Lufthansa CityLine flights from Berlin and other airports, began at 00:01 local time and is set to end at 22:00. The airport association ADV expects over 520 cancellations, though Frankfurt airport operator reports 570 cancellations alone. Lufthansa board member Michael Niggemann criticised the strike as irresponsible given current geopolitical and economic challenges. The airline has implemented an extraordinary flight plan using unaffected subsidiaries to mitigate the impact. The strike follows a 94% vote in favour by union members after collective bargaining negotiations failed. Lufthansa remains one of two bidders for the Portuguese airline TAP, alongside Air France-KLM.
The National Union of Civil Aviation Flight Personnel (SNPVAC) stated on Monday, the 6th, that it only learned through the media about the proposals for the partial purchase of TAP and criticised the 'arrogant stance' of the current Government in the process. The union claims that potential buyers were prohibited from contacting workers' representatives, hindering transparency. The union argues that the privatisation must be treated as a matter of public interest, with workers at the centre of the decision, and calls for a more transparent process as the government moves forward with the sale of up to 44.9% of the airline's capital.
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.
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.
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.”
IAG announced in November that it was interested in acquiring a minority stake in the Portuguese airline.
The tender for the allocation of new ground handling licences at the airports of Lisbon, Porto and Faro is causing concern among workers and airlines, given the uncertainty of the process's outcome. One thing seems certain: if the Spanish group is selected, TAP will move forward with self-handling and may subcontract...
