NEW YORK — The Lufthansa Group has formally expressed its interest in participating as a bidder in the privatization process of TAP Air Portugal.
The aviation group submitted a letter to that effect to Parpública, the Portuguese state holding company.
In addition to initially acquiring a minority stake, the aim of the process is to establish a long-term partnership between the Lufthansa Group and TAP Air Portugal “in order to secure the successful future of TAP as Portugal’s national airline.”
Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said the Lufthansa Group welcomes the Portuguese government’s privatization process.
“Our goal is to strengthen Portugal’s global connectivity, preserve TAP’s Portuguese identity and ensure the airline’s sustainable growth,” said Spohr. “TAP Air Portugal is of great strategic importance to the European aviation industry. As a long-standing partner in the Star Alliance and with our extensive investments in Portugal, we continue to see the Lufthansa Group as the best partner for TAP and for Portugal.”
The Lufthansa Group has been active in Portugal for more than 70 years. The group’s airlines currently offer more than 280 weekly flights to and from Portugal. The company also employs over 400 skilled workers in the country. With the construction of a new Lufthansa Technik site for the repair of engine parts and aircraft components in Santa Maria da Feira near Porto, this number is set to rise to 1,000 by 2030.
The company notes that a cooperation would strengthen Lisbon’s position as an Atlantic hub in the Lufthansa Group network, with expanded connectivity between Europe and other regions of the world including South America, Africa and North America.
The Lufthansa Group has a considerable track record when it comes to driving aviation industry consolidation in Europe. The company notes it has strengthened national airlines such as SWISS, Austrian Airlines, Brussels Airlines, and most recently ITA Airways, while preserving their national identities.
The Lufthansa Group also posits that “as the global number one outside the U.S., the group offers the necessary size, experience, and financial stability to create sustainable value and strengthen TAP Air Portugal’s role as an ambassador for the country around the world.”
