By Aviation Nexus Staff Writer
Published: July 16, 2025
Lisbon, Portugal — Portugal’s government is moving forward with the long-anticipated privatization of TAP Air Portugal, reigniting interest among several major European and global carriers. The government aims to offload a controlling stake in the national airline, seeking strategic partners who can inject capital, enhance operational synergies, and secure TAP’s long-term competitiveness.
The privatization plan, confirmed by Finance Minister Joaquim Miranda Sarmento, targets a partial sale of up to 51% of TAP’s capital in a bid to balance public finances and modernize the country’s aviation landscape. A formal tender is expected to be launched by late Q3 2025.
Lufthansa, Air France-KLM, and IAG in the Frame
Among the likely bidders are Lufthansa Group, Air France-KLM, and International Airlines Group (IAG), all of whom have previously expressed interest in TAP due to its valuable transatlantic routes and strategic Lisbon hub.
- Lufthansa Group, fresh off its acquisition of ITA Airways, could consolidate its Southern European footprint with TAP’s extensive Brazil and Africa network.
- Air France-KLM may view TAP as a natural extension into Lusophone markets and a counterweight to Iberia’s influence in Latin America.
- IAG, parent company of British Airways and Iberia, remains a strong contender, potentially looking to integrate TAP with its Madrid operations to dominate Iberian aviation.
Other non-European players have also shown exploratory interest, including Middle Eastern and North American airlines looking to strengthen ties with Europe and South America.
Strategic Importance and Challenges
TAP’s Lisbon hub is a key transatlantic gateway, offering access to high-growth markets in Brazil, Angola, and Mozambique. However, the airline faces several challenges, including high operating costs, union resistance, and the need for fleet renewal.
The privatization process is being closely monitored by EU regulators, particularly around potential competition issues in key routes such as Lisbon-Madrid, Lisbon-Paris, and long-haul links to Brazil.
Minister Sarmento emphasized the government’s intent to “preserve TAP’s strategic autonomy while ensuring a strong and competitive future,” adding that social considerations, including job preservation and Lisbon’s hub status, will be key evaluation metrics in selecting a buyer.
What’s Next?
The government has appointed advisors from Rothschild & Co and local legal firm Morais Leitão to oversee the privatization framework. Binding offers are expected by Q4 2025, with a final decision likely in early 2026.
For potential suitors, TAP offers a gateway to high-growth transatlantic corridors, but any buyer will need to navigate Portugal’s political sensitivities and TAP’s internal restructuring needs.
