Lufthansa Group plans to transfer up to eight Airbus A350-900s to TAP Air Portugal after 2030, part of a fleet and network plan that would make Lisbon the German group's main gateway to Brazil. The commitments were part of the bid that Portugal's government selected on October 14, when it chose Lufthansa as TAP's strategic partner over Air France-KLM.
Under the plan, TAP's operating fleet would grow from about 100 aircraft today to 117 by 2035 and 130 after that, according to ch-aviation and ECO News. The Portugal News reported that the step to 130 is linked to the completion of Lisbon's new airport. ch-aviation estimated the required fleet investment at EUR3 billion to EUR4 billion.
TAP's first A350s
The government did not say whether the A350-900s destined for TAP would come from Lufthansa's existing fleet or from future deliveries. ch-aviation said Lufthansa currently operates 31 A350-900s, with 14 more on order, plus 15 A350-1000s.
The A350-900 would become TAP's largest aircraft type and its first A350 variant. TAP's widebody fleet is currently built around the Airbus A330-900neo, of which it operates 19, with two more due for delivery. The plan also includes modernising the fleet of regional subsidiary Portugália.
Lisbon for Brazil, Porto as a second base
On a conference call with analysts on October 15, Lufthansa Group CEO Carsten Spohr said the group currently carries passengers from France, Spain and Portugal to Brazil through its hubs in Frankfurt, Munich and Zurich. "In the future, routing them through Lisbon will be an element that will create much more value in our network strategy," he said, as quoted by The Portugal News.
Spohr said Lufthansa holds about 9 per cent of the Europe–Latin America market, ranking sixth, and that adding TAP would lift its share to about 20 per cent, on a par with British Airways and Iberia owner IAG. In return, TAP could feed passengers into Lufthansa's hubs for connections to Asia and elsewhere.
Porto would become a second strategic base with eight long-haul aircraft, and Spohr said it also offers growth potential toward North America and Brazil. TAP is expected to remain in Star Alliance and could join the transatlantic joint venture that Lufthansa runs with United Airlines and Air Canada.
Spohr also stressed that TAP is already profitable. "This is the first time ever [that] we are buying a profitable airline," he said, according to ch-aviation.
The deal terms
Lufthansa will initially acquire 44.9 per cent of TAP for EUR1.025 billion, a stake that could rise to 49.9 per cent for up to about EUR1.2 billion if employees do not take up all of the up to 5 per cent of shares reserved for them. The group also made a non-binding proposal for a possible later purchase of the remaining shares, which remains subject to negotiation.
Despite holding less than half, Lufthansa would share control with the Portuguese state through qualified-majority provisions. It would nominate three of the four members of TAP's executive committee, while the government would keep five of the nine board seats. Lufthansa expects up to EUR450 million in annual net synergies, mostly accruing to TAP, with about two-thirds realised within three years. The transaction is expected to close in the first half of 2028, subject to European Commission approval.
Maintenance and training commitments
The bid goes beyond flying. Lufthansa plans to integrate TAP's maintenance and engineering arm into the Lufthansa Technik network, and a new EUR300 million Lufthansa Technik facility in Santa Maria da Feira is expected to employ about 700 people. ECO News reported that the proposal also includes a EUR500 million civil and military aviation school in Tancos, with around 200 jobs, and a travel technology innovation hub in Aveiro.
Not everyone is focused on growth. Madeira's regional government has urged the state to ensure that TAP keeps its links to Madeira and the Azores after privatisation, which the government has listed among the connections it will protect.
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