The State is reported to have invested €3.2 billion in TAP, and Luís Montenegro has made it clear that the Government intends to recoup the amount invested. At a Cabinet meeting, the Prime Minister reportedly said the partnership with Lufthansa “points the way towards recouping the total amount invested”.

Luís Montenegro therefore intends to exchange the remaining capital for a stake in the Lufthansa Group’s holding company by 2028.

To complete this process, the Government would need parliamentary support from either the PS or Chega, which proved impossible to secure; this necessitated the sale of a minority stake in TAP during this first phase.

Lufthansa has acquired a stake in TAP

Lufthansa acquired 49.9% of TAP for €1.201 billion, promising to increase the Portuguese airline’s fleet to 130 aircraft.

Luís Montenegro says the German group offered €1.351 billion to acquire 50.1% of the company. Lufthansa also intends to pay €863 million for the shares and is offering a 5% stake in the Lufthansa Group, which is valued at €488 million.

Miguel Pinto Luz

The Minister for Infrastructure said the next step is a “transparent and expeditious” dialogue to carry out the second phase of privatisation, led by Luís Montenegro. Miguel Pinto Luz said dialogue has been a priority, adding that the main opposition parties knew the winning bidder before the public announcement.

Luís Montenegro also argued that privatisation will make the company more sustainable and viable, so it will no longer need to rely on taxpayers’ money.

TAP’s management

Until the first phase of privatisation is complete, TAP will remain under the same board, with Lufthansa overseeing all its processes.

Also, as part of the TAP acquisition, Lufthansa has promised to set up a school for military and civilian pilots, with an investment of €500 million at Tancos Air Base, 10% of which will be co-funded by the State.

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