Air France-KLM Becomes the Newest Airline Rival Wanting To Buy TAP Portugal

Air France-KLM has expressed interest in acquiring a stake in Portugal’s flag carrier, TAP Air Portugal.

According to Bloomberg, the airline pair is ready to present its candidacy as part of the TAP privatization process, targeting a sale of at least 49% of TAP. Meanwhile, other major airlines are also circling TAP, setting the stage for a competitive bidding process that could reshape transatlantic travel and even the major airline alliances, affecting travel partnerships — and maybe the options you have for using your points and miles.

Here’s what travelers need to know.

Air France-KLM Wants To Acquire TAP Portugal

Marrying strategy with ambition, Air France-KLM sees TAP as a key asset in connecting southern Europe with South America — especially Brazil.

TAP — with its robust hub in Lisbon (LIS) and a fleet of 81 aircraft — is an emblematic carrier that represents Portugal’s aviation prowess. Air France-KLM CEO Ben Smith stated, “Air France-KLM stands ready to present its candidacy as part of the TAP privatization process,” emphasizing that TAP’s strong brand, image, and fleet would be preserved in line with conditions set by the Portuguese government. To coincide with this newly expressed interest, Smith visited Portugal with French President Emmanuel Macron to discuss a potential deal.

The plan is to boost connectivity within Portugal, including secondary cities, and to enhance the group’s competitive edge in transatlantic routes. This strategic move not only signals a commitment to modernizing European aviation but also positions Air France-KLM to better serve the lucrative market between Europe and South America.

Other Airlines Are Also Interested in TAP

However, Air France-KLM isn’t the only player with its sights on TAP. The Lufthansa Group has also expressed interest in acquiring a stake, reportedly considering a 19.9% share, though acquiring a controlling stake would raise regulatory hurdles.

International Airlines Group (IAG) — which owns British Airways, Aer Lingus, and Iberia — is another contender. IAG’s director, Jonathan Sullivan, stated, “Over time, we would like to have a path towards a majority [position] because it would give the business the possibility to grow.”

IAG sees TAP as a strategic asset that can help bolster its transatlantic network and strengthen its presence in South America. With IAG’s history of pursuing key European assets, its interest in TAP signals broader ambitions to dominate the competitive transatlantic market, even as it continues to focus on its Madrid hub.

Currently, TAP is in Star Alliance — the same alliance as Lufthansa and United Airlines. IAG’s airlines, however, are in Oneworld with American Airlines and Alaska Airlines, while Air France and KLM are in SkyTeam with Delta. If another airline takes a controlling stake in TAP, it could shift alliances, which we saw with Lufthansa’s acquisition of Italy’s ITA or the Scandinavian Airlines (SAS) move from Star Alliance to SkyTeam after an investment from Air France-KLM.

When airlines move alliances, it impacts their partnerships — and thus the types of points and miles you can redeem for their flights.

Final Thoughts

As the TAP privatization process unfolds, the stakes are high, and the competition is fierce. Air France-KLM’s proactive bid, underscored by high-level visits, demonstrates its serious intent to expand its transatlantic reach.

Meanwhile, rival interests from Lufthansa and IAG suggest that TAP is viewed as a critical asset in the future of European aviation. Ultimately, whichever airline emerges as the dominant partner will likely redefine connections between Europe, South America, and beyond, changing transatlantic travel and the options you have for partner award tickets using your airline miles.