Lufthansa Explores Stake in TAP Air Portugal

Lufthansa CEO Carsten Spohr met with Portuguese government officials to discuss acquiring a 19.9% stake in TAP Air Portugal, which could be valued between 180 and 200 million euros. This stake is strategically below the 20% threshold that would require European Commission approval, allowing for a smoother transaction amid ongoing privatization efforts. The Portuguese government, eager to expedite the sale of TAP, which has seen a significant profit decline, is considering Lufthansa favorably due to the potential for maintaining the airline's autonomy. Other major players, including British Airways' IAG and Air France-KLM, are also vying for a stake in TAP, which offers valuable routes to Brazil and Africa. The finalization of any deal is expected to take until at least the third quarter of 2025, as the government has yet to establish the terms for privatization. The meeting reflects a renewed interest in TAP after previous plans were derailed by political issues and the airline's financial struggles during the pandemic.