Source: http://www.luchtvaartnieuws.nl/news/?ID=14129 (in Dutch)
Portugalia has applied to become an associate member of SkyTeam. The planning is that it will join the alliance in 2008. Air France will be the sponsor airline.
Not totally unexpected, consdering the codeshares they already have with AF and KLM. Though, a nice addition to the alliance to capture the Portugese market.
It seems that after the bigger 'flag' carriers, now regional and smaller carriers are joing alliances one-by-one.
After reading several very positive reports about Portugalia, I think it's a good addition to the alliance.