Reports indicate IAG is leaning away from TAP while Lufthansa is preparing an initial bid.

Initial bidders sought a 49.9% stake in TAP, with multiple rounds of bids and evaluations anticipated after the April 2 deadline.

The privatization process is in a phase where Lufthansa and IAG are expected to submit offers, with competition intensified by fuel-price pressures.

Lufthansa has floated the possibility of an initial minority stake up to 49.9% as a pathway to eventual majority control, with potential alignment on worker rights.

Air France-KLM has submitted a non-binding bid for 44.9% of TAP, signaling strong conviction TAP will join its group.

Private equity firms and other European carriers are also eyeing TAP, underscoring a competitive race for a stake.

Lufthansa has also submitted a non-binding offer for TAP’s minority stake, keeping its interest active.

Air France-KLM envisions TAP joining a multi-hub network centered on Lisbon, with expanded links to Porto and other Portuguese cities, as part of a broader integration strategy.

The plan emphasizes integrating TAP into a larger group to achieve scale, global reach, and a concerted push toward decarbonization across its businesses.

Air France-KLM notes its experience with state-owned shareholders and would position TAP within its global commercial framework, leveraging partnerships with Delta and Virgin Atlantic to boost TAP’s reach.

Non-binding bids from rivals IAG and Lufthansa are due by early April, with the winner expected to be announced by summer.

The privatization process continues despite ongoing legal cases and Azul’s lawsuit against TAP SGPS, with due diligence slated to begin after April 2.