TAP AIR PORTUGAL: LUFTHANSA, AIRFRANCE-KLM AND INTERNATIONAL AIRLINES GROUP, READY TO BUY.
- Aviation Eagle
- Jul 8
- 2 min read
Lufthansa and Air France-KLM have shown interest in Portuguese carrier Tap, but International Airlines Group, owner of British Airways and Iberia, is considered by analysts as the favorite in the acquisition process
International Airlines Group is a leading contender to buy a $1 billion stake in Portuguese state carrier Tap Air Portugal .
Analysts and bankers familiar with the deal say LAG is the strongest candidate to secure a deal, beating out rivals Lufthansa Group and Air France-KLM .
The sale of Tap: timing and procedures
The exact terms of the sale have not yet been clarified , although a spokesperson for Portugal's infrastructure ministry said the deal would take place this year.
The previous government had approved the privatization of at least 51 percent of TAP by the end of 2023 , but the plans were blocked due to snap elections in early 2024.
According to the Italian newspaper Corriere della Sera, Lufthansa sought an initial 19.9 percent stake in Tap last September. The acquisition "is expected to materialize no earlier than the first quarter of 2025."
Corriere, citing Portuguese sources, said the stake could be worth between 180 and 200 million euros.
European aviation executives are pushing for greater consolidation in the aviation industry to improve cost efficiency and compete with global rivals.
Data from analyst Cirium shows that 36 European airlines account for 80 percent of the region's capacity, compared to six U.S. airlines.
Critical issues for the sale of the group
One concern with the sale of Tap is that foreign ownership would dilute the company's Portuguese identity.
Antitrust rules also need to be considered, as selling a stake greater than 20 percent would require scrutiny by the EU's competition regulator in Brussels .
Last year LAG abandoned plans to acquire Spain's Air Europa after regulatory demands from Brussels made the deal unattractive to shareholders.
The LAG had offered further concessions to appease the competition regulator, but these were deemed insufficient.
Other consolidation efforts in Europe have been more successful: in November, the Commission approved Lufthansa's plans to acquire a minority stake in Italy's Ita Airways .
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