The Azores regional government announced on Wednesday, March 18, that it directed SATA Holding SA, the owner of Azores Airlines, to begin a new privatisation process for the Portuguese regional carrier.
Plans for the new privatisation attempt
According to the Azores government, this new privatisation process is to be carried out through direct negotiation, to expedite the procedures, and aims to sell the majority of the airline’s share capital.
The privatisation will, as in the previous process, count on an “independent supervisor”, who is set to be the university professor Augusto Mateus, former president of the jury that advised against the previous bid. A Special Monitoring Committee will also be nominated.
The Azores’ Regional Secretary of Finance, Duarte Freitas, stated that the priority is:
“To safeguard the strategic interests of the Azores region, to ensure workers’ rights and existing labour commitments, and to guarantee the continuity of essential air routes and services to the region and the diaspora.”
Why the last process failed
Duarte Freitas said that the sale of the airline could not be finalised in the previous attempt:
“it was not possible to ensure a decision that was in the regional public interest.”
This was in line with the recommendation of the previous privatisation jury, which found that the sole bid by the Atlantic Connect Group to buy the airline carried “unacceptable risks” for failing to safeguard the interests of the company and of public funds.
The Portuguese Union of Civil Aviation Pilots (SPAC) had also stated in January that it would not support a sale that jeopardised employment, the sustainability of Azores Airlines, or the interests of the archipelago.
The privatisation of Azores Airlines must be completed by the end of 2026, due to a deadline set by the European Commission for the implementation of the Restructuring Plan in Portugal.
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