Air France-KLM and the Lufthansa Group each announced Wednesday that they had submitted binding offers to acquire a minority stake in TAP Air Portugal. Each company in April had made non-binding offers for a minority stake in the Portuguese carrier.
The Lufthansa Group announcement did not disclose its desired stake, but the Portuguese government, which owns TAP, is offering 44.9 percent for an investor and a 5 percent stake reserved for employees.
"We want to strengthen Portugal's national airline as part of the Lufthansa Group and as the leading airline for the South Atlantic, with Lisbon as a strategic hub," Lufthansa Group CEO Carsten Spohr said in a statement. The company also noted that it currently offers 353 weekly flights to and from Portugal.
Air France-KLM bid for a 44.9 percent to 49.9 percent stake, according to the company. The offer would cover all parts of TAP's business—passenger transport, cargo, loyalty, and maintenance, repair and overhaul.
"For the past three years, our teams have worked closely with Portuguese stakeholders to come up with our strongest proposal for TAP," Air France-KLM Group CEO Benjamin Smith said in a statement.
In addition, company partner Delta Air Lines "supports and is aligned with this bid and shares the ambition to further increase Portuguese connectivity, notably on the North Atlantic market," according to Air France-KLM.
"Delta supports our joint venture partner Air France-KLM's proposed investment in TAP, which would enhance trans-Atlantic travel options and Portugal's role as an enhanced business and leisure destination," Delta CEO Ed Bastian said in a statement.
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