Portugal will open talks with Air France-KLM and Lufthansa to improve their binding offers for 44.5% of flag carrier TAP Air Portugal, after state holding company Parpública assessed the bids as different but closely matched in overall valuation. Minister of the Presidency António Leitão Amaro said the process aims to move toward a single bidder for the final negotiation. The privatisation, relaunched in 2025 by Luís Montenegro's government, was narrowed to the two groups after IAG withdrew. Government rules allow the sale of up to 49.9% of TAP, with 5% reserved for employees, while the state remains the majority shareholder. Minister for Infrastructure Miguel Pinto Luz has said joint management with the selected investor could begin as early as 2026, while the capital injection is expected in summer 2027.