Boston Warwick works with airlines, airports and aviation investors on flight operations, fleet valuations and mergers and acquisitions. Each week we set out the aviation stories that matter to them, with the source and date for every figure.

This week Portugal chose Lufthansa as the buyer of up to 49.9 per cent of TAP Air Portugal, ending a contest with Air France-KLM. Aviation Capital Group placed the biggest order in its history, for 75 Airbus narrow-body jets, and Turkish Airlines signed for the engines on its new Boeing 737 MAX order. In Saudi Arabia, King Khalid International Airport in Riyadh reopened on Sunday, although many foreign airlines are still staying away.

Mergers, Acquisitions & Finance

Lufthansa chosen to buy up to 49.9 per cent of TAP Air Portugal

Portugal’s Council of Ministers selected Lufthansa on 14 October 2026 to buy 44.9 per cent of TAP Air Portugal. A further 5 per cent is reserved for TAP employees, and Lufthansa takes whatever they don’t buy, so its holding could reach 49.9 per cent. The state keeps 50.1 per cent. Lufthansa said it has offered €1.025bn for the 44.9 per cent, which could rise to up to €1.2bn for 49.9 per cent once the employee shares and a ticking fee, an extra payment that grows the longer completion takes, are included. The government puts the total at €1,201m.

According to the government’s statement, Lufthansa’s offer for the stake was up to 16 per cent higher than the one from Air France-KLM. Both bidders also made firm offers for a majority of TAP in a possible second phase, which would be a separate process. Lufthansa’s majority offer adds €1,351m, valuing TAP directly at €2,552m in total. That figure includes a share swap that would give the Portuguese state 5 per cent of the combined Lufthansa and TAP group, making it the second-largest shareholder, plus €863m in cash, assuming the second phase completes by July 2028.

The government says Lufthansa’s plan grows TAP’s fleet to as many as 130 aircraft, strengthens its hub at Lisbon Airport, Portugal (LIS/LPPT) and its presence at Porto Airport, Portugal (OPO/LPPR), and keeps the TAP brand and head office in Portugal. Lufthansa said it expects to sign the agreements shortly and that completion depends on approval by the relevant authorities. A Portuguese government minister told the public broadcaster RTP that there is “a risk” in the competition review.

For investors, the interesting part is the second phase. Lufthansa said on 14 October that earlier acquisitions had shown a majority stake brings extra benefits for all parties, and it welcomed Lisbon’s move to start the process for TAP’s full privatisation. The first step is a minority stake, but the price for control has already been tabled. Lufthansa’s existing airlines already fly 353 times a week to six destinations in Portugal, according to the group, so the competition review is the main hurdle to watch.

Lufthansa looks at selling flight planning software

The Financial Times reported on 16 October that Lufthansa is exploring a sale of some of its software assets in a deal worth close to €1bn. Reuters and dpa, citing the FT, named Lido and NetLine, used by airlines for flight and operations planning, and said the Sirax revenue accounting business could be included. Banks have been engaged, private equity is seen as the likely buyer and talks are at an early stage. Lufthansa declined to comment. Boston Warwick will publish a separate article on what is for sale and who might buy it.

Industry Innovations & Services

Aviation Capital Group orders 75 A320neo Family jets

Aviation Capital Group, the California-based aircraft lessor, said on 16 October 2026 that it had finalised an order with Airbus for 75 A320neo Family aircraft, the largest order in its history. The aircraft are due between 2032 and 2035, and the deal lets ACG switch between variants within the family. ACG had 118 A320neo Family aircraft in its fleet at 30 June 2026, and the order takes its outstanding A320neo Family orders to 115. Airbus said the order takes ACG’s total historical order for the type to 190. Neither company disclosed a value.

With deliveries starting in 2032, ACG is buying aircraft that airlines will lease from it in the next decade, and the conversion rights let it choose later between the smaller A320neo and the larger A321neo. Airbus says the A320 Family has won more than 20,400 orders.

Turkish Airlines signs for more than 300 LEAP-1B engines

Turkish Airlines and CFM International signed a memorandum of understanding in Istanbul on 16 October 2026 for more than 300 LEAP-1B engines, including spares, to power the 100 firm and 50 option Boeing 737 MAX aircraft the airline announced on 23 September. A memorandum is not yet a firm contract. The deal includes long-term maintenance for Turkish Airlines’ whole LEAP-1B fleet, more than 600 engines across Turkish Airlines and its low-cost subsidiary AJet, and support for a new engine repair shop in Türkiye run by Turkish Technic, according to GE Aerospace, one of CFM’s two parent companies.

Turkish Airlines told the Istanbul stock exchange the same day that the aim is to manage engine maintenance costs more predictably. Engine shop visits are one of the biggest costs in running a jet fleet, and repair slots have been scarce. Bringing the work in house gives the airline control over its own engines and a business selling the service to other carriers.

Airport Developments

Riyadh reopens, but many airlines stay away

King Khalid International Airport, Saudi Arabia (RUH/OERK) reopened on Sunday 18 October after closing following Houthi attacks that began on 10 October, The National reported. Many airlines had not lifted their suspensions. Qatar Airways and Air Arabia had given no resumption date, KLM had cancelled Riyadh flights to 31 October, British Airways planned to return with one daily flight on 3 November and Cathay Pacific had suspended Riyadh flights until 31 January 2027. Delta has moved the start of its Atlanta to Riyadh service from 23 October to March 2027.

Reuters reported on 12 October that cancellations across all Saudi airports reached 46.4 per cent, citing Cirium data. Airlines that lose Riyadh for weeks lose more than one route, because many feed passengers from Riyadh onto long-haul flights through their own hubs.

Key Watch Items

Lufthansa and the Portuguese government are due to sign the TAP agreements, and the competition review will set the timetable. Boeing reports third-quarter results on 27 October and Airbus on 28 October. In Saudi Arabia, the question is how quickly foreign airlines return to Riyadh, and whether those with suspensions running into November and beyond bring them forward.

Boston Warwick publishes Aviation Insights every week. Subscribe to receive it by email on Monday morning, and reply to any issue with questions about the stories.

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