LISBON – Lufthansa will acquire a 44.9% stake in TAP Air Portugal for a deal valued by the Portuguese government at 1.2 billion euros ($1.3 billion), officials announced Wednesday, advancing the latest attempt to privatize the national carrier.
German airline Lufthansa defeated Air France-KLM, the only other bidder remaining in the process, Portuguese Prime Minister Luis Montenegro said.
The government plans to reserve a further 5% of TAP for purchase by the airline’s more than 9,000 employees. The Portuguese state will remain the company’s largest shareholder.
The transaction must still receive approval from European Union regulators. Montenegro said the government could complete TAP’s full privatization by 2028.
TAP Air Portugal carried 16.7 million passengers last year, according to the airline. Its fleet of more than 90 aircraft serves over 90 destinations, including 52 in Europe, 16 in Central and South America, 14 in Africa and 11 in North America.
The carrier’s extensive network to Brazil is viewed as one of its most valuable assets, analysts say.
TAP reported a net profit of 4.1 million euros ($4.6 million) last year, based on its published financial accounts.
Earlier efforts to sell stakes in TAP, launched in 1998 and again in 2015, ultimately collapsed. In both cases, the Portuguese government brought the airline back under state ownership.
