“We have seen the news, that the Portuguese Government is facing some difficulties. We think it may take longer than many people think for the TAP process to move forward,” said the German group’s CEO, Carsten Spohr, in a call with analysts to present the 2024 results. “It is no surprise to say that we are interested. But in mergers and acquisitions, I prefer to talk about it when it happens and not before”, added the executive in a report by ECO.

Lufthansa has been identified as interested in several European companies, such as TAP, but when asked about what the priority is in terms of consolidation, the CEO preferred to focus on ITA, a company in which he owns 41% but with the possibility of buying the remainder. “The current focus is on ITA. It is too early to talk about the rest, the processes have not even started yet,” said Carsten Spohr.

Without specifically mentioning TAP, Spohr recalled the multi-brand integration model followed by the Lufthansa group, which operates under several different brands, such as Swiss or the recently acquired ITA, from Italy. “The model that was seen as a limitation has become a strength, and I think people in Lisbon or Madrid are paying attention to how we manage this model,” he said.

With the predictable fall of the Portuguese Government, leaving it with limited management powers in the short term, there are several dossiers that may be suspended. One of them is the privatisation of TAP, whose model has not met with consensus between the PSD and PS, particularly with regard to the part of the capital to be sold. The privatisation decree law, which would contain the framework and conditions for this sale, was expected to be published by the end of the first quarter. However, it is quite possible that this dossier will now be suspended so that these decisions can be taken by a future Government with full powers.

It should be remembered that when the previous Executive of António Costa fell, a privatisation decree-law had already been approved, but it was understood that there were no conditions for a management Government to continue with the process. The same should happen now, despite the several large international groups that have already expressed interest in the Portuguese airline, such as Lufthansa, Air France-KLM and the IAG group, of British Airways and Iberia. TAP was privatised in 2015 by the Government of Pedro Passos Coelho after the Government program had been rejected, a decision that was heavily criticised by the PS, which later ended up “reversing” that decision when António Costa came to power.

Regarding the new technical repair facilities in Portugal, Lufthansa management said that the investments in Santa Maria da Feira and Calgary, Canada, both under the Lufthansa Technik umbrella, “are the basis for the future growth” of the group.

At stake is the construction of a new 54,000 square meter unit in Santa Maria da Feira, which should be completed by the end of 2027 and will create more than 700 jobs in the region. The investment was not revealed, only that it is in the triple digits, that is, above €100 million.