Germany’s Lufthansa group is pushing all the plus points for it being chosen for the TAP reprivatisation ‘race’ that is still running (albeit slightly in the background these days) and involving competing airline giants Air France-KLM and IAG.
Not only does Lufthansa already have ‘industrial synergies and investments in Portugal’, it is now offering the possibility of more: including the creation of a pilot training school.
Group CEO Carsten Spohr was speaking at a press conference to present Lufthansa’s 2025 results. TAP “would be a perfect match for us”, he enthused – highlighting the potential of the Brazilian and Latin American markets in Lufthansa’s expansion strategy, suggesting TAP could strengthen Lufthansa’s presence in these markets.
But it was on the question of the airline’s Lisbon hub that Spohr cut to the chase (the hub being an absolute ‘take it, or leave it’ part of the government’s deal).
The German group emphasised its intention to strengthen Lisbon’s position as an air hub amid competition from Europe and the South Atlantic, writes Lusa.
“You only have to look at the map of Europe and see where Lufthansa has its hubs to understand Portugal’s unique position,” said Spohr.
The competitors for privatisation – Air France-KLM and IAG, owner of Iberia and British Airways – already have a strong presence in markets close to Portugal.
“Our competitors are already big in the South Atlantic. Some have hubs in Madrid, others in Paris, which are much closer to Portugal. This means that the threat to a hub in Lisbon would be greater, which would be another argument for the Lufthansa group,“ he said.
To be fair, Lufthansa’s investments this far in Lufthansa Technik, in Santa Maria da Feira (Aveiro district), have already looked very much as a sweetener for this much wider deal. The group is channelling hundreds of millions of euros into an aircraft maintenance and repair facility expected to create more than 700 skilled jobs by 2027.
“Portugal could become a very important strategic partner,” Spohr continued.
As for the pilot training school idea, it is something the group is “assessing” in discussions with the Air Force. This far it is only a ‘could-be-located-in-Portugal’ idea.
At this point, Spohr referred to the reprivatisation process being “in its early stages” (albeit it is something that has been discussed for years).
”The process is just beginning, but the European map will not be changed in this process,” said Spohr.
Asked about contacts with the Portuguese government and potential approval by the European Commission, Spohr equally said it is too early to draw conclusions.
“This transaction will only go ahead if it creates value for our stakeholders,” he stressed. “It depends on the costs and prices that will have to be paid.”
Non-binding bids for this second crack at the privatisation of TAP must be submitted to state company Parpública by April 2, and must include a financial component, such as the price offered for shares and future valuation mechanisms (‘earn-outs’), writes Lusa.
“Interested parties will also have to submit industrial and strategic plans, synergies, and guarantees to maintain TAP’s status as an EU air operator.
“The specifications provide for the sale of up to 44.9% of TAP’s capital, with 5% reserved for employees, with any unsubscribed shares subject to the future buyer’s right of first refusal.
“Lufthansa posted a profit of €1.3 billion in 2025, down 3% from the previous year, despite record revenues of €39.6 billion,” the state news agency concludes.
A rather different spin on the rosy future for TAP with Lufthansa came from Ryanair air boss, Eddie Wilson, a couple of years ago, when he warned that the German group has a “very simple business manual: buy an airline for half nothing restrict capacity, increase prices, don’t compete on short journeys and operate all long-haul traffic through Germany.
If Lufthansa does clinch the deal it wants for TAP, the airline will ‘shrink’, Wilson forecasted.
Source material: LUSA
