Portugal signs TAP sale contract with Lufthansa, pledging to keep airline Portuguese

The Government on Tuesday signed the share sale contract for TAP with Lufthansa, formalising the conditions of the deal that was confirmed in October.

In a speech to those present, Luís Montenegro congratulated everyone involved in the deal, stressing that it makes it possible "to anchor the country's strategic interests and preserve TAP's identity and brand". "If that were not the case, we would not have taken the decision we ultimately took," he said.

The Portuguese prime minister said that the Lufthansa group, which is now formalising the acquisition of part of TAP's capital, has always been keen to preserve the airline's uniqueness, keeping its "positioning in terms of making the most of the potential of our community, regions and economy".

"Making full use of the potential of the connection we have with our Autonomous Regions and with our communities spread around the world and with the countries with which we share a common language, is an asset for TAP and not a burden, contrary to what some might think," said the prime minister, insisting that this uniqueness "has been safeguarded", as well as "social peace within the company and the commitment we have to TAP's workers".

"Today the country is taking an extremely important step to ensure it will continue to have a Portuguese airline, with a Portuguese brand and identity," the prime minister said.

The contract signing ceremony took place at the TAP Campus next to Lisbon airport and was attended by the prime minister, Luís Montenegro, the finance minister, Joaquim Miranda Sarmento, and Lufthansa's chief executive, Carsten Spohr, who said: "TAP will continue to be a Portuguese airline".

The chief executive of the German group described it as "an important milestone for TAP, for Portugal, but also for the Lufthansa group", and stressed that the company still intends "to develop Lisbon as one of Lufthansa's hubs, while preserving its uniqueness", but recalled that the company's perspective "is not limited to the capital". Porto, Funchal, Madeira and the Algarve are also important parts of the group's strategy.

"For us, this is a unique opportunity," the CEO said, adding that the deal gives access to new markets, not only in Portugal but also on the African continent and in Latin America, particularly Brazil.

On 14 October, the Government announced the choice of Lufthansa for the partial privatisation of TAP. The offer included 1.201 billion euros for up to 49.9% of the airline's capital, of which 5% would preferably be allocated to workers. The Portuguese government expects the transaction to be completed by early 2028.

For now, the state will retain 51% of the capital and a majority on the board of directors.

With the formalisation of the contract between the entities involved, completion of the sale and TAP's future integration into the Lufthansa group now depend on an assessment by Brussels.