Air France-KLM has formally submitted a definitive bid to acquire a minority stake in the Portuguese national airline, TAP.
The move places the Franco-Dutch aviation group in direct competition with German rival Lufthansa, which also submitted a final offer before the government-mandated deadline in Portugal.
Expanding South American routes
Both aviation giants originally made non-binding offers in April before entering the final bidding stage requested by Portuguese officials.
Securing a share in TAP would allow Air France-KLM to significantly expand its transatlantic route network, particularly to destinations across South America and Africa.
The Portuguese government currently owns the entire airline but intends to privatize up to 49.9 percent of its shares.
A September decision expected
Officials in Lisbon are seeking a strategic partner to help the carrier benefit from the scale and reduced operating costs of a larger international network.
Air France-KLM hopes to integrate TAP alongside its primary regional carriers, including KLM and low-cost provider Transavia.
Chief Executive Ben Smith stated that the offer aligns with the company’s broader effort to build a competitive, European-based global airline network.
American partner Delta Air Lines has also voiced support for the acquisition, noting it could increase passenger options for flights across the Atlantic Ocean.
Portuguese authorities are expected to review the competing proposals and make a final decision in early September.
