Lufthansa wins bidding race to acquire stake in TAP Air Portugal

The Portuguese government announced on Wednesday that German airline Lufthansa will become a new shareholder in TAP Air Portugal. Euronews reported that the decision was made during a Council of Ministers meeting. Prior to the official announcement, Reuters, One Mile at a Time, Upgraded Points, Aerospace Global News, and NL Times all reported that Lufthansa was expected to win the privatization battle. [1][2][3][4][5][6]

Lufthansa beat out rival bidder Air France-KLM to acquire 44.9 percent of the Portuguese carrier's share capital. Euronews reported that both airline groups submitted their final bids at the end of September, according to state shareholdings management company Parpública. One Mile at a Time and Upgraded Points also confirmed that the transaction involves a 44.9 percent stake. [1][2][4]

The privatization structure also includes a dedicated allocation for company staff. Euronews reported that 5 percent of the airline's share capital is reserved for purchase by employees under the decree-law published in August. [1]

Lufthansa is the flag carrier of Germany and the second-largest airline group in Europe by passengers carried. The company is a founding member of the Star Alliance, which was established in 1997, and modern operations trace back to its founding in January 1953. [7][9]