Air TransportAir France-KLM has submitted a non-binding offer for a minority stake in TAP Air Portugal, entering the long-delayed privatization process of the Portuguese flag carrier.
The proposal was filed on April 2 with Parpública, the state-owned entity managing the sale. The group did not disclose financial terms or the size of the stake it is seeking.
TAP is seen as a strategic asset due to its Lisbon hub, which serves as a key link between Europe, Brazil and other parts of Latin America, as well as Africa. Air France-KLM already has a strong presence on transatlantic routes and could use TAP to reinforce that network, particularly in the South Atlantic market.
Chief executive Benjamin Smith said the group intends to “strengthen the operations at Lisbon while developing connectivity in other cities across the country including Porto,” signaling plans to expand beyond the capital.
The airline group also highlighted that TAP’s network overlaps little with its own, which could ease integration and allow for route expansion rather than consolidation.
See also: Azul sues TAP over €189 million claim as privatization process nears
The Portuguese government reopened the sale process after a series of delays tied to political and market conditions. Other major European groups, including IAG and Lufthansa, are expected to submit competing offers in the coming months.
TAP was partially privatized in 2015 in a deal involving Azul founder David Neeleman and Portuguese investor Humberto Pedrosa, before the state later regained control of the airline after years of financial difficulties.
