Air France-KLM and Lufthansa asked to improve bids for airline serving 14 African destinations

• Portugal has asked Air France-KLM and Lufthansa to improve their offers for a 44.9% interest in TAP Air Portugal.
• The government said their binding bids were too closely matched to select a preferred buyer.
• TAP operates approximately 80 weekly flights to 14 destinations across nine African countries.
• Neither bidder has publicly guaranteed that it will retain or expand individual African routes.

Air France-KLM and Lufthansa have been asked to improve their bids for a major interest in TAP Air Portugal, intensifying the contest for an airline operating approximately 80 weekly flights to Africa.

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Both groups submitted binding offers in July for a 44.9% stake in Portugal’s national airline. However, the government judged the two proposals to be too closely matched to choose a preferred bidder, Reuters reported.

Portugal has consequently opened a final round of negotiations that is expected to last several weeks.

The financial value of the bids has not been disclosed. No winner has been selected, and neither airline group has entered exclusive negotiations.

Although TAP is based in Europe, the result will have consequences for travellers and businesses across Africa. The airline operates 14 destinations in nine African countries, with particularly important connections to Portuguese-speaking markets.

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    **TAP’s African network is part of the prize**

TAP operates approximately 80 weekly services from Lisbon and Porto to Angola, Mozambique, Cabo Verde, Guinea-Bissau, São Tomé and Príncipe, Morocco, Senegal, The Gambia and Ghana.

The network includes major destinations such as Luanda, Maputo, Accra, Dakar and Casablanca, alongside smaller markets with fewer direct connections to Europe.

For Angola, Mozambique, Cabo Verde, Guinea-Bissau and São Tomé and Príncipe, TAP’s importance is rooted in historical, commercial and family ties with Portugal. The airline carries tourists, business travellers and members of large African diaspora communities.

TAP chief executive Luís Rodrigues previously identified Africa and Brazil as two of the airline’s strongest areas for future growth. The carrier’s Lisbon hub allows passengers from African cities to connect to destinations across Europe and the Americas.

The African routes also feed passengers into TAP’s wider network. Their value cannot therefore be measured only by the profitability of each individual flight.

    **What the two bidders want**

Air France-KLM and Lufthansa are competing for a minority interest, but the successful group would become TAP’s strategic partner and gain substantial influence over its future.

Portugal’s government said the decision would consider more than the purchase price. Its official privatisation framework identifies the buyer’s financial strength, industrial plan and commitment to maintaining Portugal’s air connectivity as important conditions.

Up to 5% of TAP’s shares have been reserved for employees. The strategic investor may be allowed to acquire any portion that workers do not purchase, potentially increasing its stake to 49.9%.

The Portuguese state would initially retain at least 50.1%, although it has left open the possibility of selling more shares later.

Air France-KLM said its offer includes plans for TAP’s passenger, cargo, maintenance and loyalty businesses. Its proposal is supported by US carrier Delta Air Lines, one of its most important commercial partners.

Lufthansa, meanwhile, has presented itself as a long-term industrial partner. The German group already owns or controls interests in several European airlines, including Swiss, Austrian Airlines, Brussels Airlines and ITA Airways.

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    **The alliance question**

The choice could also affect TAP’s position in the global airline-alliance system.

TAP is currently a member of Star Alliance, the same group as Lufthansa. A Lufthansa investment would therefore keep the Portuguese carrier within its existing alliance family.

Air France-KLM belongs to the rival SkyTeam alliance. A successful bid could eventually raise questions about TAP’s continued membership of Star Alliance, although no decision to change alliances has been announced.

For African passengers, an alliance change could affect connecting airports, frequent-flyer benefits, codeshare arrangements and the destinations available on a single ticket.

These consequences are possible rather than confirmed. TAP’s African schedules cannot be assumed to change merely because a new shareholder enters the company.

    **Why Portugal is selling again**

TAP’s ownership has changed repeatedly over the past decade.

Portugal partially privatised the airline in 2015 but later restored state control. The government increased its ownership during the COVID-19 pandemic as travel restrictions pushed the carrier into financial distress.

The airline subsequently received approximately €3.2 billion in state support and underwent a restructuring programme approved by the European Commission. Measures included reducing costs, changing its fleet and shedding jobs.

With TAP returned to profitability, Portugal revived the sale process in 2025, seeking an established airline group capable of supplying capital, operating expertise and access to a larger international network.

The sale is also valuable because of TAP’s position at Lisbon Airport, where congestion and limited take-off and landing slots make expansion difficult for competitors.

    **What African travellers should watch**

Neither Air France-KLM nor Lufthansa has publicly disclosed detailed commitments for TAP’s 14 African destinations.

The decisive questions are whether the bidders have promised to preserve frequencies, open new routes or redirect more passengers through their existing hubs in Paris, Amsterdam, Frankfurt, Munich or Brussels.

Smaller African markets may be particularly concerned about route protection. Flights serving countries such as Guinea-Bissau and São Tomé and Príncipe carry strategic importance even when their passenger volumes are lower than services to Brazil or major European cities.

Portugal must now determine which proposal offers the better combination of money, connectivity and long-term investment.

Until it selects a preferred bidder, the contest remains open, and the future of one of Europe’s most important African air networks is part of what is being negotiated.