Lufthansa CEO says interest in TAP 'very strong' as it vies with Air France-KLM

Air France KLM SA

Yesterday 14:54

By Sergio Goncalves

    LISBON, June 29 (Reuters) - Lufthansa LHAG.DE has a strong interest in acquiring a minority stake in Portugal's flag carrier TAP and plans a maintenance hub in the country, its CEO said on Monday, as the German group readies a rival bid to Air France-KLM AIRF.PA.
       The Portuguese government relaunched TAP's long-delayed privatisation in July, aiming to sell a 44.9% stake to a strategic airline partner to boost its global reach and competitiveness, while setting aside an additional 5% for employees.
Portugal has asked Lufthansa and Air France‑KLM to submit binding bids by end‑July, after the two airlines emerged as sole contenders with initial offers the government deemed "largely equivalent and very ambitious" across strategic, industrial and financial terms, underpinning its confidence in TAP's valuation.
Lufthansa CEO Carsten Spohr told reporters that the group was now one of the biggest airline operators globally after a series of acquisitions in Europe, and "now sees Portugal for its potential as a key partner".
"(Lufthansa's) interest in TAP is very strong... we're confident that it is the right partner, but the government will decide," Spohr was quoted as saying by online outlet ECO, referring to the planned stake sale expected to be completed by early September.
Lufthansa has expanded its European footprint through a series of acquisitions of stakes in carriers including SWISS, Austrian Airlines and Brussels Airlines, and more recently Italy's ITA Airways, as it builds a multi-hub network across the region.
Spohr said those airlines became stronger and preserved their identities, while their hubs expanded.
TAP's key appeal lies in its prime and lucrative slots connecting its Lisbon hub with Brazil, Portuguese-speaking African countries and the United States.
Spohr's remarks came ahead of the groundbreaking ceremony of a Lufthansa Technik Portugal plant in northern Santa Maria da Feira, focused on maintaining and overhauling aircraft engine components, which is expected to start operations in 2028.
"We strongly believe in Portugal, which is why we are opening a maintenance hub here," he added. 
       

(Reporting by Sergio Goncalves; Editing by Emelia Sithole-Matarise)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters Messaging: sergio.goncalves.reuters.com@reuters.net/))