Lufthansa Picked to Buy 44.9% of TAP Airline

Portugal selected Lufthansa to buy 44.9% of TAP Air Portugal, with an option to increase the stake to up to 49.9% if employees do not exercise their right to buy. The Portuguese state will retain 50.1% and control, so TAP remains Portuguese and continues operating from Lisbon under its current Star Alliance membership. The decision was approved by Portugal’s Council of Ministers and announced by Prime Minister Luís Montenegro on 14 October, appearing in the official gazette on 16 October. Lufthansa’s bid was up to 16% higher than rival Air France-KLM, offering about EUR 1.201 billion (about US$1.34 billion) for 49.9%, versus EUR 1.038 billion from Air France-KLM. The plan calls for additional investment of EUR 3–4 billion, a fleet lift to 117 aircraft by 2035 and 130 afterwards, and potential transfer of up to eight Airbus A350-900s after 2030.