Portugal will enter an additional round of negotiations with Deutsche Lufthansa AG and Air France-KLM over the sale of a minority stake in TAP. Presidency Minister António Leitão Amaro stated that the decision to negotiate with both bidders reflects the fact that the two offers are very close in overall value. State-holding company Parpública submitted its assessment of the offers to the government earlier this week after both airline groups submitted binding bids on July 29.

Air France-KLM said it has "unaltered interest in TAP" and looks forward to the next phase of the process. Lufthansa said it looks forward to continuing the process constructively in the coming weeks. The negotiations will move with speed and be guided by the national interest.

A final decision on the sale of a stake in TAP is expected to take weeks. The price is an important aspect but it is not the only one. Portugal plans to sell as much as 49.9% of TAP, including 44.9% to a strategic investor and as much as 5% to employees.

TAP posted a €99 million first-half loss as higher fuel prices weighed on earnings. The airline is attractive to both groups for its extensive network linking Europe with Brazil, Latin America and Africa, while strengthening either carrier's position in southern Europe.