Air France-KLM has submitted a binding offer to acquire a 44.9% to 49.9% stake in TAP Air Portugal, taking a significant step in the Portuguese flag carrier’s privatization process. Beyond strengthening its airline network, the proposal places strong emphasis on expanding Maintenance, Repair and Overhaul (MRO) capabilities in Portugal through long-term investment and technology development.
As part of its strategic plan, Air France-KLM intends to develop new MRO facilities in Portugal in collaboration with TAP Maintenance & Engineering, with which it has maintained a partnership for more than two decades. The proposed expansion would focus on the maintenance of next-generation aircraft and engines, while creating highly skilled employment opportunities and supporting the growth of Portugal’s aerospace sector.
The Group said the initiative would complement its existing MRO operations in France and the Netherlands rather than replace them. TAP’s engineering division would also gain access to Air France-KLM’s advanced digital technologies, including artificial intelligence-driven maintenance solutions and operational innovations.
Air France Industries KLM Engineering & Maintenance, one of the world’s leading independent MRO providers, currently supports more than 3,000 aircraft for over 200 airline customers worldwide. The company continues to invest in next-generation maintenance capabilities as demand for advanced aircraft and engine support grows globally.
In addition to the MRO expansion, Air France-KLM’s proposal includes a long-term strategy to strengthen TAP’s position as Portugal’s national carrier. The Group plans to establish Lisbon as its primary Southern European hub, enhancing connectivity between Europe, the Americas and Africa. TAP’s extensive network to Brazil would complement Air France-KLM’s existing services and its long-standing partnership with Brazilian carrier GOL.
If the transaction is approved, TAP would become part of Air France-KLM’s commercial network alongside Air France, KLM and Transavia, enabling greater operational synergies and expanded customer connectivity.
Delta Air Lines, Air France-KLM’s joint venture partner, has expressed support for the proposed investment and intends to explore a broader commercial partnership with TAP, including reciprocal codeshare arrangements and loyalty programme benefits.
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Commenting on the proposal, Benjamin Smith, Chief Executive Officer of Air France-KLM Group, said the bid represents a long-term strategic vision for both TAP and Portugal, aimed at ensuring sustainable growth while preserving the airline’s brand, management, headquarters and Lisbon hub.
The Portuguese government is currently evaluating bids as part of the privatization process. Air France-KLM submitted its binding offer to Parpública on July 29, reaffirming its long-term commitment to investing in Portugal’s aviation sector and expanding its European MRO footprint.
