“As advocates for the consolidation of European airlines, we welcome the initiation of the privatization process by the Portuguese government. We will carefully review the published specifications and are eagerly anticipating entry into the process to assess the government-defined requirements and the commercial viability of a potential investment,” stated the German group when questioned about the approval of the terms of reference and timeline for TAP’s re-privatization process.
The same Lufthansa official added: “As a long-time Star Alliance partner and investor in new maintenance facilities near Porto, we consider the Lufthansa Group the best partner for TAP and Portugal.”
Beyond its interest in TAP, the German group has been strengthening its presence in Portugal with industrial investments. In December 2024, Lufthansa announced the establishment of Lufthansa Technik Portugal S.A., an industrial unit for the repair of engine parts and aircraft components in Santa Maria da Feira.
This project represents an investment of 227.6 million euros and aims to create 526 jobs — 325 by 2028 and the remaining by 2030. The facility, the company’s first in Portugal, is scheduled to begin operations by the end of 2027 in the LusoPark industrial zone, focusing on inspection, testing, maintenance, and repair of aircraft engines and components.
The publication of the terms of reference in the Diário da República will officially mark the start of TAP’s re-privatization, initiated on July 10 with the approval in the Council of Ministers of the decree-law defining the terms of the operation.
The document outlines the technical, legal, and administrative conditions of the sale, as well as the qualification and evaluation criteria for proposals to acquire up to 49.9% of the airline’s capital.
Although not yet public, the government has already stated that only airline operators with revenues exceeding 5,000 million euros can tender, and requirements regarding integrity and financial capability must also be met.
The sale will be conducted directly, with 5% of the capital reserved for employees. If this percentage is not subscribed, the future buyer will have the right of preference.
The process will occur in four stages: pre-qualification (up to 60 days), submission of non-binding proposals (up to 90 days), submission of binding proposals (up to 90 days), and possible negotiation. The government anticipates an overall duration of about one year, subject to regulatory approvals.
Parpública will be responsible for analyzing the proposals and preparing a technical report to submit to the Council of Ministers.
The operation includes, in addition to TAP, companies such as Portugália, the TAP Health Care Unit, Cateringpor (51% owned by TAP), and SPdH, formerly Groundforce.
Interest in the re-privatization has also been expressed by the Air France-KLM Group and IAG — owner of British Airways and Iberia — who are also awaiting the publication of the terms of reference to assess the next steps.
