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Lufthansa CEO: TAP's interest is'very strong,' in the competition with Air France-KLM

The CEO of Lufthansa said that the German group is preparing a bid to rival Air France-KLM.

In July, the Portuguese government launched a long-delayed TAP privatisation. It aimed to sell a stake of 44.9% to a strategic partner airline to increase its global reach, and set aside an extra 5% to employees. Portugal has asked Lufthansa to submit binding bids before the end of July. The two airlines were the only contenders, with initial offers that the government considered "largely equal and very ambitious" in terms of strategic, industrial, and financial terms. This demonstrates its confidence in TAP’s valuation.

Carsten Spohr, CEO of Lufthansa, told reporters that after a number of acquisitions made in Europe the group is now one of the largest?airline operators worldwide. "Now?sees Portugal as its potential as a?key partner."

Spohr, quoted by online outlet ECO as saying, "Lufthansa is interested in TAP... We're confident it's the right partner but the government will make the decision," Spohr referred to the planned stake sales expected to be finished by early September.

Lufthansa is expanding its 'European footprint' through a series acquisitions, including SWISS Austrian Airlines, Brussels Airlines, and most recently Italy’s ITA Airways. It builds a multi hub network throughout the region.

Spohr said that these airlines "became stronger, and maintained their identities while their hubs expanded."

TAP's main appeal is its lucrative and prime?slots? connecting its Lisbon hub to Brazil, Portuguese-speaking African nations?and the United States.

Spohr made his remarks ahead of the groundbreaking of a Lufthansa Technik Portugal facility?in northern Santa Maria da Feira. The plant will be devoted to maintaining and overhauling aircraft engine components. It is expected that operations will begin in 2028.

He added, "We believe strongly in Portugal. That is why we have opened a maintenance center here."

(source: Reuters)