Lufthansa takes responsibility for TAP’s regulatory remedies

O secretary of State for Infrastructure today assured Parliament that lufthansa will bear directly any regulatory remedies that the European Commission imposes for reasons of competition to allow entry into the capital of the Portuguese company.

Answering questions from the parliamentary leader of the CFP Paula Santos about the operation, Hugo Espírito Santo recalled that “there is a commitment that the buyer will take the regulatory remedies directly”, but rejected speculating on the conditions and obligations that the community executive may decide as guardian of the European competition treaties.

“Lufthansa acquires TAP to grow TAP and also in the maintenance area. And, I'm sorry, I don't make any future remarks about what DG Comp is going to decide or not.", said the Secretary of State, during a special hearing in the Committee on Budget, Finance and Public Administration to discuss the proposed State Budget for 2027 (OE2027).

She asked for clarifications on the financial contours of TAP's partial privatisation, won by Lufthansa with a proposal of EUR 1,201 million for a participation of up to 49.9% of the Portuguese company, including the 5% share reserved for employees and the planned financial adjustments.

“You followed the news from the morning post without having the least critical spirit, you spoke of EUR 1,000 million in cash, you forgot the EUR 3,300 million in debt and the EUR 6,000 million in TAP’s liabilities. This is what has been sold, Madam”, the Secretary of State answered.

The ruler referred to a headline from the Post Office of the Morning of 16 October, which referred – “Lufthansa gets TAP free” – and which led the Ministries of Finance and Infrastructure to clarify at the time that “a company is not only worth what it has in box or in unreported losses”, but “for what it has and for what it owes” and that, in the specific case, “the price also includes an investment commitment in new assets, which alone in the fleet, represent between three and four billion euros”.

Developing the subject at today's hearing, Hugo Espírito Santo replied to Paula Santos: “Any financial lesson... My 16-year-old understands this, so I confess I have some difficulty explaining... Debt of EUR 3,300 million. And don't talk to me about tax credits, because you assume we're gonna make a profit, which is clearly complicated if TAP is left alone. And, therefore, from this point of view, I think the quality of the business is clear.”.

In an interview with Conversa Capital, Antena 1 and Jornal de Negócios, published on 18 October, Miguel Pinto Luz revealed that contacts have been maintained with the European Commission and that “some of these remedies” that Brussels may possibly require have already been cautioned by the German group.

Lufthansa was chosen by the Portuguese Government on 14 October, to the detriment of Air France-KLM, which also reached the stage of presenting an improved binding final proposal.

The winning group's offer includes EUR 1,025 million for the 44.9% of the capital, plus EUR 58 million in financial adjustments and EUR 118 million for the employee contribution.

According to the timetable presented by the Portuguese Government, the completion of the operation is scheduled for the beginning of 2028.

Lufthansa provides annual net synergies of up to EUR 450 million with TAP and agreed with the State a mechanism to raise dividend distribution by up to 75%.

On 16 October 2026, the German chief of diplomacy, Johann Wadephul, defended with the Portuguese counterpart that the purchase will “strengthen Europe as a location” and will create new jobs.