The Portuguese government has shortlisted Air France-KLM and Lufthansa Group for the decisive phase of TAP Air Portugal's privatisation, inviting them to submit binding offers for a stake of up to 49.9%. Lisbon aims to finalise the capital opening by the end of summer 2026, while retaining a public majority and strategic control of the national carrier. This step follows an initial round of non-binding bids submitted in early April by both groups. IAG, parent of British Airways and Iberia, which had expressed interest, ultimately withdrew from the race. A tight timeline has been set: the privatisation framework was established by decree in summer 2025, with the goal of concluding the transaction in 2026. The process targets a minority stake sale to a strategic partner, with the state keeping over 50% of the capital. According to Portuguese Infrastructure Minister Miguel Pinto Luz, a final decision could come "between late August and early September 2026" after evaluating binding offers and commitments. The chosen partner will require approval from European competition authorities and, if applicable, the European Commission's review of state aid plans. Lisbon emphasises a "selective" and "competitive" process to maximise TAP's value while safeguarding national strategic interests. The government also promises consultation with employee representatives, who will be offered up to 5% of the capital. Strategically, Portugal aims to ensure that privatisation strengthens TAP's role at its Lisbon hub, a key intercontinental gateway to Brazil, Africa, and North America. Conditions include maintaining the headquarters in Lisbon, the TAP brand, and major long-haul routes. The state also seeks to recoup the massive investment made during the COVID-19 crisis, estimated at around €3.2 billion, by stabilising the airline, which has returned to profitability but remains exposed to rising costs and intense European competition. Beyond TAP, the attractiveness of Lisbon's hub is at stake, given current airport saturation and ongoing debates about new infrastructure. The partner's choice could influence future decisions on capacity, connectivity, and tourism development. Air France-KLM and Lufthansa Group present contrasting strategies. Air France-KLM has expressed a "constant, strong, and lasting" interest in TAP, viewing it as complementary to its network, especially on Brazil and the South Atlantic. The Franco-Dutch group highlights potential synergies through connections at Paris, Amsterdam, and Lisbon, and deeper integration within SkyTeam. Lufthansa Group, meanwhile, sees TAP as an extension of its growth-by-acquisition strategy, following Austrian Airlines, Swiss, Brussels Airlines, and ITA Airways. It aims to place TAP at the centre of its multi-hub network alongside Frankfurt, Munich, Zurich, Vienna, Brussels, and Rome. Both candidates promise fleet investment and improved profitability, but their detailed plans remain confidential, with groups only confirming their bids and willingness to acquire up to 49.9%.