India, Oct. 14 -- Portugal's government has selected Lufthansa to acquire a stake of up to 49.9 percent in TAP Air Portugal for EUR 1.2 billion ($1.3 billion), choosing the German airline group over rival Air France-KLM.
The deal gives Lufthansa greater access to Southwest Europe and TAP's valuable routes linking Lisbon with Brazil, Portuguese-speaking Africa and the United States. Prime Minister Luis Montenegro said Lufthansa's bid was 16 percent higher than Air France-KLM's offer.
Lufthansa has committed to expanding TAP's fleet from 101 aircraft as of June to 117 by 2035 and 130 after 2035, when Lisbon's new airport is expected to be operational. TAP currently serves 93 destinations worldwide.
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