Air France-KLM confirms bid for TAP Air Portugal amid European interest

According to Bloomberg, if acquired, Air France-KLM intends to maintain TAP Air Portugal's brand, image, and fleet per conditions set by the Portuguese government. The group also aims to boost connectivity within Portugal, including secondary cities.

TAP Air Portugal plays a crucial role in connecting Southern Europe with South America, especially Brazil. It also serves destinations in North America, Africa, and other parts of Europe. By acquiring a majority stake, Air France- KLM would enhance its competitiveness in the transatlantic market connecting Europe with South America.

Currently, TAP operates a fleet of 81 aircraft with an average age of 12.1 years.

Lufthansa Group has also expressed interest in TAP following its acquisition of ITA Airways in June. Lufthansa is considering purchasing a 19.9% stake due to EU antitrust regulations.

International Airlines Group (IAG), which owns British Airways and Iberia among others, has communicated its interest in acquiring a majority stake as well. IAG director Jonathan Sullivan remarked during a meeting with Portuguese journalists in Dublin:

"Over time we would like to have a path towards a majority [position] because it would give the business the possibility to grow without the investment of other shareholders. "

This comes after IAG abandoned plans to purchase Spain’s Air Europa due to regulatory challenges but remains committed with its existing 20% stake bought in August 2022.