After obtaining approval to buy 40% of ITA Airways, Lufthansa has a new target: TAP Air Portugal.
According to the Italian newspaper Corriere della Sera, Carsten Spohr, CEO of Lufthansa Group, will travel to Lisbon in the coming days to present the proposal to the Portuguese government.
Lufthansa’s goal is to expand its presence in one of the regions where it is at a disadvantage compared to its competitors Air France-KLM and British Airways-Iberia (IAG Group): South America.
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According to the proposal, Lufthansa would buy 19.9% of TAP for up to €200 million, valuing the Portuguese carrier at €1 billion. The low percentage is to avoid scrutiny by the European Commission, which recently approved the purchase of ITA Airways. If approved, Lufthansa expects to close the deal in early 2025.
With TAP, Lufthansa would gain a solid presence in East Africa and South America, especially in the Brazilian market. And if the acquisition is approved by the Portuguese government, it will be the sixth flag carrier under the Lufthansa Group umbrella: Lufthansa, Swiss, Austrian Airlines, Brussels Airlines and ITA Airways.
The Portuguese government intends to sell 51% of TAP and, due to its potential in connections between North America, South America, Africa and Europe, it has attracted the attention of the main European airlines: Air France-KLM, British Airways-Iberia and Lufthansa.
Of the three, Lufthansa is the one with the smallest presence on Europe-South America routes.
