Government Says TAP Privatisation Can Proceed With Just One Bidder as Lufthansa and Air France-KLM Vie for Stake

Portugal's Infrastructure Minister Miguel Pinto Luz told parliament on Monday that the privatisation of TAP Air Portugal can go ahead even if only one bidder remains in the final phase of the process — a scenario that has grown more likely after IAG, the parent company of Iberia and British Airways, withdrew from the race last week.

Speaking before the Committee on Infrastructure, Mobility and Housing, Pinto Luz said the government is waiting for a report from Parpública, the state holding company overseeing the sale, which has approximately 30 days to evaluate the non-binding offers submitted by the two remaining contenders: Germany's Lufthansa and France's Air France-KLM.

Two European Giants Still in the Running

IAG formally dropped out at the April 2 deadline for non-binding bids, citing a preference for controlling stakes rather than the minority position on offer. Portugal's privatisation model limits the sale to up to 49.9 per cent of TAP's capital, with five per cent reserved for employees.

That leaves Lufthansa and Air France-KLM as the only candidates. Lufthansa is widely seen as the frontrunner, given its existing portfolio of European airline investments and its long-standing interest in TAP's transatlantic route network. Air France-KLM submitted a bid for a minority stake, entering the long-delayed privatisation process at the last moment.

"Two of the largest European airline groups continue in this race," Pinto Luz told lawmakers, urging "serenity" and warning against premature conclusions about the outcome.

One Bidder Could Be Enough

Pressed by Livre MP Jorge Pinto on whether the government would proceed with just one final offer, the minister was unequivocal. "If we reach the binding phase and one group meets all the requirements — maintaining the hub, the brand, the routes — and offers exceptional value, I believe we should proceed," he said.

The minister added that "the objective is to ensure the operation takes place with security and transparency, regardless of the number of competitors."

Azul Lawsuit Will Not Block the Sale

Pinto Luz also addressed the outstanding legal dispute with Brazilian airline Azul, which has filed a claim worth approximately 189 million euros against TAP. The minister confirmed that the liability will remain with the Portuguese state and will not be transferred to any future buyer, describing it as a legacy issue that poses no obstacle to the privatisation.

"The interested parties are fully informed about the situation," he said, adding that TAP continues to operate as a "good TAP" regardless of the judicial proceedings.

Minister Defends His Role

The parliamentary hearing was originally requested by the Socialist Party last November, following police searches at TAP, the Barreiro group, and Parpública over suspected crimes related to TAP's 2015 privatisation — a process overseen by the same PSD/CDS government in which Pinto Luz served as Secretary of State.

Responding to questions about whether he should recuse himself, the minister was firm: "I would not be here if I did not have that understanding." He added that any assessment of his position is ultimately a matter for Prime Minister Luís Montenegro.

The Parpública report is expected within the coming weeks. Once delivered, the government will issue invitations for binding offers, marking the decisive phase of a privatisation that has been delayed for the better part of a decade.