TAP: Air France-KLM sees round as opportunity and Lufthansa values dialogue

“ A our participation in this phase reflects our firm and unaltered interest in TAP. We view this additional round as an opportunity to strengthen our project and further demonstrate why our industrial plan is the most appropriate to ensure the long-term growth of the airline and the national economy,” said Air France-KLM official source in a written response to Lusa.

Asked whether the three-week deadline set by the Government for this phase is sufficient to submit a final and improved binding proposal, the French-Dutch group stated that it was “confident” in its ability to comply with the established timetable and “responsive to the requests of the Portuguese authorities”.

As for the possibility of increasing the value of the proposal for the acquisition of up to 44.9% of TAP's capital, whose amount is not known, it preferred not to deepen the financial terms of the offer.

“We do not comment on details regarding financial terms, which remain strictly confidential,” he said, adding that his approach at this stage will remain oriented to present the proposal that “better ensure sustainable growth of TAP”, contribute to the Portuguese economy “through the creation of value and employment” and strengthen “connectivity not only to Lisbon, but to Portugal as a whole”.

For its part, the Lufthansa Group stated to value the decision of the Portuguese executive to deepen negotiations on the proposal presented at the end of July.

“ We appreciate the fact that the Portuguese Government is moving towards a deeper dialogue with the Lufthansa Group on our proposal at the end of July. We hope to continue the process constructively in the coming weeks,” Lusa said.

“Our goal remains to establish a long-term partnership with TAP and Portugal,” added the same official source, without also clarifying whether the group is available to improve the value offered by the airline’s participation.

The Government announced on Friday that it will start a final phase of negotiations with Air France-KLM and Lufthansa, the two competitors that submitted binding proposals for the purchase of 44.9% of TAP.

According to the Minister of the Presidency, António Leitão Amaro, the two offers have a “very close overall assessment”, which is why the executive decided to proceed with an additional round before selecting a single competitor.

The Council of Ministers resolution published in the meantime states that this negotiating stage will last three weeks and will allow for final and improved binding proposals.

The privatisation process provides for the sale of up to 49.9% of TAP's capital, with 5% reserved for employees. The share not to be subscribed by the employees may be acquired by the selected investor under a preferential right.

Air France-KLM and Lufthansa submitted their binding proposals on 29 July.

The final decision on the investor will still have to be adopted in the Council of Ministers and will be subject, among other things, to the authorisation of the European competition authorities.