Lufthansa is considering a 19.9% stake in TAP Air Portugal, as reported by Italian newspaper Corriere della Sera. The German airline group is looking to avoid purchasing a controlling stake in TAP in order to bypass the need for approval from European Union antitrust authorities. Portugal began the sale process for TAP last September, seeking to sell a 51% stake to an investor who can help grow the airline, its Lisbon hub, guarantee jobs, and increase flights to secondary airports in the country.
Lufthansa, along with other major airline groups such as Air France-KLM and International Airlines Group, has shown interest in acquiring TAP due to the strategic location of its Lisbon hub for Europe-Latin America connections. TAP’s connectivity in Africa and its ability to serve transatlantic routes with cost-efficient narrowbody aircraft, such as the Airbus A321LR, make it an attractive target for acquisition. Lufthansa recently received approval from the European Commission to acquire a 41% stake in ITA Airways, underscoring its strategic growth plans in the airline industry.
The European Commission’s approval of Lufthansa’s acquisition of a stake in ITA Airways highlights its confidence in the airline group’s ability to ensure the long-term survival and success of the Italian carrier. Lufthansa is not expected to make an offer for TAP until early 2025, and the potential 19.9% stake could be valued between €180 million to €200 million. The airline sector stock index performance year-to-date has shown fluctuations in the financial performance of various airline companies globally, including network carriers, low-cost carriers, and related companies.
The Skift Travel 200 (ST200) provides a comprehensive overview of the financial performance of nearly 200 travel companies worth over a trillion dollars, including airlines. The index offers insights into the overall financial health and performance of the airline sector, allowing investors and industry stakeholders to track trends and make informed decisions. Lufthansa’s potential investment in TAP Air Portugal represents a strategic move to expand its presence in key markets and strengthen its network connectivity, aligning with its long-term growth objectives in the airline industry.
In conclusion, Lufthansa’s interest in acquiring a stake in TAP Air Portugal reflects its strategic focus on expanding market presence and strengthening network connectivity. The potential investment aligns with the airline group’s growth plans and could provide opportunities for synergies in key markets. The European Commission’s approval of Lufthansa’s acquisition of a stake in ITA Airways underscores its confidence in the airline group’s ability to drive long-term success. As the airline sector continues to navigate challenges and opportunities, strategic investments and partnerships are essential for sustainable growth and resilience in the industry.
