Air France-KLM Seeks Minority Stake in TAP Air Portugal

Air France-KLM Group is making waves in the European aviation scene by being the first airline group to officially express interest in acquiring a minority stake in TAP Air Portugal. With at least two other contenders expected to join the bidding, the competition to strengthen their foothold in the European airline market is heating up.

On September 25, 2025, the Franco-Dutch airline announced its plans to submit an “expression of interest” for a 44.99% stake in TAP. This announcement follows a government decree approved by Portugal’s President Marcelo Rebelo de Sousa in August 2025, which set the stage for the long-awaited privatization of the national airline.

The Portuguese government aims to privatize TAP to recoup approximately €3.2 billion in state aid given to the airline during the COVID-19 pandemic. This privatization process is anticipated to be finalized by early 2026.

Through this privatization, the government plans to sell a 49.9% non-controlling stake in TAP. This divestment will consist of a significant 44.9% stake, valued around $817.7 million, to be offered to major investors, with the remaining 5% set aside for TAP employees.

Air France-KLM Group’s initiative places it in a favorable position early in the bidding process. Alongside the German Lufthansa Group and the International Airlines Group, which owns British Airways, interest in TAP is substantial. All proposals must be submitted by 16:59 on November 22, 2025, in order to advance in the selection.

In a brief communication to the Portuguese authorities overseeing the sale, Air France-KLM confirmed that it is reviewing the Terms of Reference for TAP’s privatization process. They expressed their intent to submit an official expression of interest by the required deadline.

TAP Air Portugal represents a potentially strategic asset for the Air France-KLM Group. Its hub at Lisbon-Humberto Delgado Airport (LIS) would provide a crucial network in Southwest Europe while enhancing connectivity for passengers traveling to key markets, including Brazil, Portuguese-speaking African countries, and various locations in the US. Such additions could bolster Air France-KLM’s presence in regions where it currently has limited operations.

Furthermore, if Air France-KLM becomes the successful bidder, TAP might shift its alliance membership from Star Alliance to SkyTeam, which could significantly strengthen SkyTeam’s influence in South America and Africa.

Long-term interest in TAP has been evident since early 2025 when Air France-KLM first expressed its interest. During French President Emmanuel Macron’s visit to Portugal in January, CEO Ben Smith underscored the importance of partnerships focusing on sustainable aviation fuel.

In March 2025, Smith reiterated that the Group would commit to preserving the TAP brand and its operations. This aligns perfectly with the Portuguese government’s requirements for the sale, which include maintaining the airline’s identity and its contributions to the economy.

This acquisition fits into Air France-KLM’s ambitious growth strategy, which aims for a 10% annual increase in capacity.

European consolidation appears imminent, especially if any of the three interested airline groups succeeds in their bid. The Lufthansa Group, already a strong player in the European market, has recently acquired stakes in various carriers, including Brussels Airlines and ITA Airways. They reportedly held preliminary discussions with the Portuguese government regarding TAP earlier this year.

The IAG group is also weighing its options regarding TAP’s privatization. Following the publication of the full terms of the sale on September 23, 2025, they expressed their intent to carefully analyze the details.

Any successful bid will likely face scrutiny from the European Commission concerning competition issues, similarly to Lufthansa Group’s takeover of ITA Airways. Potential delays could arise from requests for additional information or previous involvement from competition authorities, pushing the completion date beyond early 2026.

What do you think about the potential impact of Air France-KLM’s interest in TAP Air Portugal?