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 proposal for privatisation, “«”reiterating that it is the best-equipped partner to develop the Portuguese flag carrier”.
Lufthansa’s Head of Strategy, Tamur Goudarzi Pour, also insisted that the group will not be lowering the price it is willing to pay for the airline ‘just because of the energy crisis’.
Lufthansa is comfortable with the Portuguese government’s privatisation model – which allows for the sale of up to 44.9% of the capital, with 5% reserved for employees – he added, stressing that a minority stake is not a deterrent, and that ‘many integration benefits’ could be achieved even without immediate majority control.
The announcement comes amid uncertainty regarding other potential buyers, writes Lusa today.
Reports from Bloomberg suggest that IAG (Iberia/British Airways) may not submit a bid after all, while Air France-KLM, the other interested group, is still expected to, albeit it hasn’t said a great deal in recent weeks.
Lufthansa, on the other hand, has kept its exposure up. Even today, Goudarzi Pour suggested that Lufthansa’s position as Europe’s largest aviation group provides ‘a natural advantage, offering TAP greater resilience against fuel price volatility, geopolitical constraints, and economies of scale in technology and distribution’.
Lufthansa has also indicated that it plans to invest in modernising the customer experience – including in-flight connectivity via Starlink technology, which will provide Wi-Fi across all aircraft – saying that its strategy focuses on expansion, rather than diverting traffic to Frankfurt.
Dismissing concerns regarding the downsizing of TAP, the airline highlights the strategic potential of Lisbon and Porto, particularly as hubs connecting Europe, North America, South America, and Africa. It particularly emphasised TAP’s significance in Brazil – which remains a central pillar of the airline’s strategic interests, says Lusa.
Addressing labour concerns, Goudarzi Pour has also confirmed meetings with Portuguese unions, adding that the goal is not to cut staff but to grow the company.
Non-binding proposals must be submitted to Parpública, a company with 100% public capital, responsible for managing state-owned equity stakes, by tomorrow (April 2) and must include financial offers and future valuation mechanisms (earn-outs), industrial and strategic plans, expected synergies, and guarantees that TAP will maintain its status as a European Union air operator.
