Lufthansa(US:DLAKY) Guan Cha Zhe Wang·2025-12-02 07:51Core Viewpoint - Lufthansa Group has officially expressed interest in participating in the privatization bidding of TAP Air Portugal, aiming to acquire a minority stake and establish a long-term partnership to support the airline's sustainable development [1][3]. Group 1: Privatization Process - The privatization process of TAP Air Portugal is expected to be completed within 12 months, consisting of four main stages: pre-qualification, proposal submission, binding offers, and final negotiations [1]. - The Portuguese government initiated the privatization process in September 2023, with potential buyers including Lufthansa Group, Air France-KLM Group, and International Airlines Group (IAG) [3]. Group 2: Financial Context - TAP Air Portugal has faced profitability challenges, relying on €2.65 billion (approximately 217.55 billion RMB) in EU aid and the Portuguese government's 92% stake during the pandemic to maintain operations [2]. - The Portuguese government aims to alleviate fiscal pressure and public criticism regarding taxpayer funding for loss-making state-owned enterprises by selling shares in TAP Air Portugal [3]. Group 3: Strategic Importance - Lufthansa Group views the potential acquisition as strategically significant for the European aviation industry, aiming to strengthen cooperation and enhance Lisbon's position as a transatlantic hub [3][4]. - The acquisition could improve connectivity between Europe and regions such as South America, Africa, and North America [3][4]. Group 4: Operational Insights - Lufthansa has over 70 years of operational experience in Portugal, currently offering more than 280 weekly flights to the country and employing over 400 technical staff [1]. - The establishment of a new base for Lufthansa Technik near Porto is expected to increase local employment to 1,000 by 2030 [1]. Group 5: Competitive Landscape - The potential acquisition may face EU antitrust scrutiny due to direct competition between IAG's Iberia and TAP Air Portugal on the Iberia-South America routes [5]. - Lufthansa Group must address TAP Air Portugal's historical debt, employee placement issues, and the integration of its Airbus fleet with its predominantly Boeing fleet [5].