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Air France-KLM
Bidding war for TAP could redraw Europe's aviation map
Air France-KLM has made an initial bid for Portuguese TAP Air Portugal.
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The Portuguese state plans to sell up to 49.9 percent of TAP, which was rescued with state funds during the pandemic. The goal is to find an industrial partner that can strengthen the company's competitiveness - while maintaining national control. This is reported by Financial Times.
What makes TAP so attractive is not primarily the European traffic - but the company's strong position on long-haul routes.
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TAP has one of Europe's most extensive traffic to Brazil, with direct routes that few competitors can match. In addition, there is a strong presence in Portuguese-speaking African markets such as Angola and Mozambique.
Equally important is the hub in Lisbon, which serves as a strategic bridge between Europe, North and South America. The airport is largely controlled by TAP, which gives a significant advantage in the battle for transfer passengers.
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For Air France-KLM, the deal is about strengthening its network southwards and building on a multi-hub strategy where Paris, Amsterdam - and potentially Lisbon - complement each other.
Lufthansa Group has pursued an aggressive consolidation strategy in recent years and has already bought into several European companies. A takeover of TAP would further strengthen the group's position.
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IAG, with British Airways at the forefront, simultaneously sees the opportunity to sharpen its presence across the Atlantic and gain better access to Latin America.
The deal can also have consequences far beyond Portugal. TAP is currently a member of Star Alliance, which includes Lufthansa.
A change of ownership could mean that the company switches alliances - for example, to Skyteam where Air France-KLM is prominent. This would in turn affect collaborations, bonus programmes, and traffic flows globally.
At the same time, the process is far from a straightforward business deal. The Portuguese government has set clear requirements: the brand must be preserved, Lisbon must continue to be the main hub, and traffic must be maintained even to smaller destinations.
This makes the deal politically sensitive - and potentially protracted.
The bidding war for TAP is yet another sign of the ongoing consolidation in European aviation. Fewer, but larger, airline groups are competing for the same passengers - where global networks and strong hubs are becoming increasingly important.
For travellers, this could mean better connections and more long-haul routes in the long run, not least to South America. At the same time, competition risks decreasing in certain markets.
The question now is not only who will win TAP - but how Europe's aviation map will look afterwards.
