Following Lufthansa’s selection to acquire an initial 44.9 percent stake in TAP, the airline plans to expand flights between Europe and South America.
Lufthansa wants to route passengers to Brazil via Lisbon who currently pass through Frankfurt, Zurich or Munich, taking advantage of the integration of TAP, the CEO of the German group said today.
In a conference call with analysts and investors, Carsten Spohr explained that Lufthansa currently transports passengers from France, Spain, and Portugal to Brazil, connecting them through its main hub airports in Europe.
“In the future, routing them through Lisbon will be an element that will create much more value in our network strategy,” the manager stated, emphasising the complementarity between TAP and the other companies in the German group.
Carsten Spohr believes that the integration of the Portuguese carrier will significantly strengthen Lufthansa's position in flights between Europe and South America, especially to Brazil.
The official highlighted that the German group's market share in flights between Europe and Latin America should increase from 9 percent to 20 percent with the entry of TAP, bringing it closer to the position of the IAG group, owner of British Airways and Iberia.
Lisbon to become key hub for South America
The CEO also highlighted that Lisbon's geographical location creates opportunities for connections between Europe and South America that do not exist at the group's other airports.
In its presentation to investors today, Lufthansa identified Lisbon as the group's main gateway for long-haul connections to the South Atlantic, while Porto is expected to serve as a second strategic base.
TAP fleet expansion and new aircraft
The proposal chosen on Wednesday by the Portuguese government foresees the reinforcement of long-haul operations in Porto, with eight aircraft, as well as the growth of TAP's fleet to 117 aircraft in 2035 and 130 after that date, in the latter case associated with the completion of the new Lisbon airport.
There are also plans to transfer up to eight Airbus A350-900s to TAP after 2030, in addition to modernising the Portugália fleet.
Within the framework of commercial integration, TAP should remain in the Star Alliance and join the transatlantic partnership involving Lufthansa, United Airlines and Air Canada, allowing for greater coordination of schedules, prices and offers on connections between Europe and North America.
New investments and job opportunities in Portugal
In addition to air operations, the German group's proposal includes investments in the area of maintenance, including the integration of TAP's capabilities into the Lufthansa Technik network.
Among the planned projects is an investment of around 300 million euros in a new Lufthansa Technik unit in Santa Maria da Feira, creating approximately 700 jobs.
The proposal also includes the creation of a technological innovation centre and support for emerging companies in Aveiro, a corporate and operational services centre in Portugal, and a military aviation school in Tancos, associated with the creation of approximately 200 jobs.
Initiatives related to the development and supply of sustainable aviation fuels in Portugal are also planned.
Lufthansa plans TAP acquisition by 2028
On Wednesday, the Portuguese government selected Lufthansa to initially acquire 44.9 percent of TAP's capital, for a reference price of 1.025 billion euros, with the stake potentially increasing to 49.9 percent if employees do not subscribe to all the shares reserved for them.
The German group expects to complete the operation in the first half of 2028, pending the acquisition of necessary regulatory approvals.
The Lufthansa Group includes companies such as Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings, as well as holding a stake in the Italian company ITA Airways, with hubs in Frankfurt, Munich, Zurich, Vienna, Brussels, and Rome.