Lisbon, April 23, 2026 (Lusa) - Portugal's cabinet approved a resolution on Thursday inviting Air France-KLM and Lufthansa to submit binding bids for TAP Air Portugal, the finance minister, Joaquim Miranda Sarmento, said.

In this second phase of the tender, the two companies have 90 days to deliver their binding proposals, the infrastructure and housing minister, Miguel Pinto Luz, explained after the cabinet meeting.

The minister said the government could decide on the buyer during a cabinet meeting in late August or early September.

He added that the delivery process should close "next July" so that Parpública, the state holding company that manages government assets, can deliver a report on the proposals to the government in August before the final decision.

Sarmento and Pinto Luz said that the financial proposals from Air France-KLM and Lufthansa are very similar.

However, the finance minister noted that "confidentiality duties prevent any reference to specific amounts".

Strategic alignment areas for TAP include connectivity with autonomous regions and Portuguese-speaking countries, expanding operations in Porto, growing maintenance and engineering services, investing in the fleet, an "ambitious 10-year growth plan," and a commitment to sustainability, Luz said.

Air France-KLM and Lufthansa remain in the race after IAG, which owns Iberia and British Airways, did not submit a proposal.

The government wants to sell up to 49.9% of the airline's capital, with 44.9% for a reference investor and up to 5% reserved for workers.

The process considers price, industrial plans, connectivity, and the buyer’s financial capacity.

PCT/LYT // ADB.

Lusa