Air France-KLM Plans Bid for 49% Stake in TAP Portugal

Air France-KLM has announced its intent to acquire a stake in Portugal's flag carrier, TAP Air Portugal, as part of the airline's privatization process, with plans to preserve its brand and enhance connectivity within the country. CEO Ben Smith emphasized the strategic importance of TAP in connecting Southern Europe to South America, particularly Brazil, and expressed commitment to maintaining TAP's hub in Lisbon. The Portuguese government is considering selling at least a 49% stake, attracting interest from other major airlines, including Lufthansa Group and International Airlines Group (IAG). This competitive bidding landscape could significantly impact transatlantic travel and airline alliances. Smith's statement coincided with French President Emmanuel Macron's visit to Portugal, highlighting the diplomatic angle of the potential acquisition. The robust fleet and market positioning of TAP make it a valuable target for Air France-KLM's expansion plans.