Aer Lingus owner poised to enter race to buy Portugal’s TAP airline

International Airlines Group (IAG), the parent company of Aer Lingus, British Airways, and Iberia, is preparing to formally enter the bidding process for Portugal's state-owned carrier, TAP Air Portugal. This move intensifies an already competitive race, as IAG joins Deutsche Lufthansa and Air France-KLM in expressing interest in acquiring a stake in the Portuguese airline. The impending privatization of TAP represents a significant opportunity for Europe's major airline groups to expand their market share, particularly in lucrative routes to South America and Africa, where TAP holds strong positions.

Sources familiar with the matter indicate that both IAG and Deutsche Lufthansa plan to submit their expressions of interest in the coming days. This follows earlier declarations from Air France-KLM, signaling a multi-front battle for control of TAP. The Portuguese Government has been transparent about its intention to privatize the airline, which received substantial state aid during the pandemic. The sale is viewed as a critical step in restructuring the carrier and ensuring its long-term viability within a consolidated European aviation landscape.

The acquisition of TAP would offer substantial strategic advantages to any of the interested parties. For IAG, it would bolster its presence in the Iberian Peninsula and provide a robust gateway to Portuguese-speaking markets. Deutsche Lufthansa, already a dominant force in Central Europe, seeks to strengthen its southern European network and transatlantic connections. Air France-KLM aims to leverage TAP's Lisbon hub to enhance its own long-haul operations and compete more effectively against its rivals. The outcome of this bidding war will undoubtedly reshape the competitive dynamics of European commercial aviation, influencing route networks, passenger services, and overall market consolidation.