Portuguese government chose Lufthansa for TAP: Full sale is on the agenda after the 1.2 billion euro deal

The Portuguese government announced that it preferred Lufthansa within the scope of the privatization of the national airline company TAP Air Portugal. According to the decision taken on October 14, it is envisaged that 44.9% of TAP's shares will be transferred to the German aviation group in the first stage. The total transaction value announced, including the 5% share allocated to employees, is 1 billion 201 million euros. The government's new statements on October 15 brought to the agenda the possibility of selling the remaining shares of the state in the future.

What does the government's decision mean?

The Portuguese government announced on October 14 that it had chosen Lufthansa's offer for the privatization of TAP.

The decision was taken following an evaluation process carried out between Air France-KLM and Lufthansa.

The government announced that it found Lufthansa's offer more advantageous in terms of financial conditions and the company's growth strategy.

However, selecting the investor does not mean that the shares are transferred on the same day.

How much of TAP will Lufthansa buy?

In the first stage, Lufthansa is planned to purchase 44.9% of TAP's shares.

Employees are also given the right to purchase 5% shares.

If employees do not use this right, Lufthansa's share may increase up to 49.9%.

In this structure, the state is expected to maintain its majority share of at least 50.1%.

Therefore, it has not been decided to sell the entire TAP to Lufthansa at the first stage.

How should 1.201 billion euros be evaluated?

government The total transaction value announced is 1 billion 201 million euros.

This amount is linked to a maximum sales structure of 49.9%, which includes a share reserved for employees.

Therefore, it is not correct to consider the figure as the exact sales price of only 44.9% of the shares.

Additionally, the announced amount does not mean that the entire TAP will be sold for the same price.

Can the state sell its remaining shares?

In the statements made on October 15, it was revealed that the government was considering the complete transfer of TAP to the private sector in the future.

Finance Minister Joaquim Miranda Sarmento pointed out the importance of political support for the sale of the remaining shares.

However, this statement does not mean that the second stage is finalized.

Political decisions, legal proceedings and necessary approvals may also be on the agenda for a full sale.

Why is the European Commission important?

Large-scale mergers and acquisitions between airline companies may be examined under European Union competition rules.

In these evaluations, flight networks, airport connections and competitive conditions on certain routes are important.

The Portuguese government wants the process to be completed as quickly as possible.

However, it cannot be said that all share transfer transactions are completed before the necessary evaluations are completed.

How might Lisbon Airport and passengers be affected?

TAP is one of the important carriers of Lisbon Airport.

The company is particularly active in Europe, Brazil and the Atlantic It is in a strategic position in terms of its connections.

The selection of Lufthansa as an investor may lead to changes in the flight network and partnerships in the future.

However, as of October 15, no decision has been announced that existing flights will be automatically canceled, tickets will be invalid, or certain lines will be closed.

There are no general changes requiring passengers to take immediate action regarding their existing reservations.

What is changing for employees?

It is noteworthy that in the privatization plan, employees are allocated the right to purchase up to 5% of shares.

However, this right does not mean that all employees will automatically have free shares.

The conditions under which shares can be purchased and whether employees will exercise this right are separate processes.

Possible impacts on employment, working conditions and collective agreements will also gain importance during the implementation phase.

Is the sale completed?

No.

On October 14, the government announced its investor preference. This is an important decision in the privatization process.

However, it cannot be said that TAP was transferred to Lufthansa without completing the necessary legal and regulatory stages.

In the coming period, the sales contract, competition evaluations and the possible second phase will be decisive.

Resources

- Governo de Portugal, 14 October 2026, Governo seleciona a Lufthansa para aquisição de até 49,9% do capital social da TAP

https://portugal.gov.pt/gc25/comunicacao/noticias/governo-seleciona-a-lufthansa-para-aquisicao-de-ate-499-do-capital-social-da-tap

- Reuters, 15 October 2026, Portuguese government seeks opposition backing for sale of rest of TAP, minister says

https://www.reuters.com/business/portuguese-government-seeks-opposition-backing-sale-rest-tap-minister-says-2026-10-15/