Portugal's TAP Heads To A Two-Airline Bidding Round

Portugal is entering the final stage of the long-delayed privatization of TAP Air Portugal, with Air France-KLM and Lufthansa due to submit binding bids for a 44.9% stake in the state-backed airline. The sale is being restarted to attract a strategic partner because EU state-aid rules restrict how much additional public funding TAP can rely on if the economy turns down. Both bidders previously made non-binding offers, but officials indicated the outcome will not be based on price alone. They are also seeking commitments on jobs, investment, and improved connectivity beyond Lisbon, including Porto, Faro, the Azores and Madeira. At stake is the importance of TAP’s Lisbon hub.