Air France-KLM Eyes Purchase Of TAP

Daniel Fowkes
14 Apr 2024
· Airlines 
Air France-KLM is still very interested in purchasing TAP as part of the ongoing privatisation process. However, there's competition.

Sources who spoke directly with the Spanish EFE news service report that Air France-KLM is continuing to show strong interest in acquiring TAP.

The popular airline group has been looking to increase its portfolio of airlines in recent months and has eyed up several companies that would be great additions.

Notably, Air France-KLM acquired a stake in SAS and plans to increase this long into the future. This acquisition is an example of the group looking to leverage the geographical positioning of this respective carrier to enhance its network.

The airline group has been closely monitoring TAP since 2023 when it was first identified that it was interested in the airline. Air France-KLM is currently waiting to see the next steps in the TAP privatisation to determine the next steps of its actions.

However, Air France-KLM will face significant competition as it is not the only airline group interested in acquiring TAP.

Lufthansa Group is another company that has expressed interest alongside IAG, which is home to airlines such as British Airways, Iberia, and Aer Lingus. As a result, if Air France-KLM is serious about progressing with such an investment, it’ll have considerable competition.

In 2023, it was reported that the government of Portugal wanted to sell at least a 51% and, therefore, majority stake into the airline, which was in line with a privatisation process that saw the legal paperwork approved, too.

Consolidation within the industry has become more common recently as airlines and relevant groups have considered partnering with other companies to improve market share and strengthen their existing businesses.

However, in almost all cases, such consolidation is heavily criticized by regulators, who express concerns over the impact on competition, customer airfares, and more.

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