Air France-KLM would be interested in replicating its SAS Scandinavian Airlines takeover strategy at TAP Air Portugal (TP, Lisbon), assuming the "conditions are right," group CEO Ben Smith said during its annual press conference. The holding sees its minority government ownership as an asset that gives it an advantage over wholly privately owned rivals.

"What we were able to advance on with SAS in 2024, where we now have a 19.9% stake with an exclusive path to a majority, is a model that we think is within our risk profile, and does enable us to participate in consolidation in a way that is less risky, without having to deal with the European Commission right off the bat," Smith said.

He opined that it was "unfortunate" but unavoidable that the Air France and KLM Royal Dutch Airlines holding company had to constantly consider the European Commission's competition policy.

"I think it weakens European airlines versus the rest of our global competitors. And we're hopeful that the European Commission review will look into what a strong European airline can provide because we think the current and previous approaches to how mergers have been treated in Europe is negative," he said.

The head of the Franco-Dutch holding visited Portugal as a part of a French government delegation last week and met with "many people" to discuss the potential acquisition. Smith underlined that Lisbon had yet to officially reveal its terms and conditions for the planned privatisation but said he understood the priorities, such as the preservation of the TAP brand, its network, particularly to Latin America, its maintenance business, and the creation of high-quality jobs in Portugal.

Smith acknowledged the ongoing political crisis in Portugal and possible May early elections that could delay the privatisation but said that Air France-KLM was not in a rush. It will not invest in TAP if it is "outside our comfort zone."

AF-KLM says its shareholding structure gives it an advantage in the process. The French government currently owns a 27.98% stake, and the Dutch one a 9.13% stake. In contrast, rivals IAG International Airlines Group and Lufthansa Group have no state shareholders.

"We are the only group that has successfully worked with two governments. The relationship works well. We have our strategies aligned. And I think this is attractive to the Portuguese government. I can't speak for them, but I think that makes us look more attractive because we have that experience," Smith said, adding that he was positive about political support for a potential acquisition from the French government.

Following the acquisition by Castlelake and Air France-KLM, the government of Denmark retains a 26.4% stake in SAS.