“We [Regional Government] want to keep SATA Internacional [Azores Airlines], and that is why we are involved in this process imposed by the European Commission, due to management that has led to an absolute impossibility of continuing to exist. And the responsible parties are undoubtedly the governments up to 2020. It is not a recent issue,” stated Berta Cabral.
The official, speaking at the permanent specialized committee for Economy in Horta, regarding the Azores’ Plan and Budget for 2026, which is to be discussed and voted on this month, noted that “a critical situation of management over decades is coming to light.”
“The European Commission imposed this solution. The alternative was far worse. Therefore, we are striving to save the company, keep it operational in the Azores, as we consider this important, and we will do everything in our power to make that happen,” Berta Cabral responded to BE’s sole deputy António Lima.
Asked about the measures the Regional Government (PSD/CDS-PP/PPM) has to safeguard the mobility of Azoreans if the privatization process fails, the regional secretary replied that a final outcome must be awaited.
“If something doesn’t go as we expect, then at that time, we will act accordingly to restore Azorean mobility, to ensure the normal economic activity in the region, and to also ensure the success of a sector of activity, such as tourism,” she assured.
She continued: “We are attentive. Management is about that. Managing is not about predicting everything or anticipating actions. It is progressively taking the measures and developing the actions considered most appropriate as circumstances demand.”
In Berta Cabral’s opinion, “there is no point in dramatizing,” pointing out that Madeira, with high tourism demand, doesn’t have an airline.
“And there are no shortage of island regions worldwide without airlines to move their tourism. There’s always a solution when you’re in a market economy,” she stated, arguing that the market “always finds a way to readjust and create equilibrium situations.”
“The terms of reference [for the privatization of Azores Airlines] ensure mobility. Everything else will naturally proceed as in all other island regions without airlines,” she concluded.
The regional Finance Secretary, Duarte Freitas, also stated today that “no one can yet trace” what the path for the SATA group will be if the Azores Airlines privatization process fails.
Questioned by the BE deputy in the regional Legislative Assembly’s Economy Committee on whether there is a defined strategy if the privatization fails, Duarte Freitas noted that “no one can yet trace the path” to follow.
“None of us want to think about a scenario where all privatization efforts fail,” he stressed.
Currently, negotiations are ongoing for the privatization of Azores Airlines with the Newtour/MS Aviation consortium, with the executive admitting the possibility of a private negotiation or the company’s closure if an agreement cannot be reached.
The Regional Government disclosed on October 31 that the president of the privatization tender jury postponed the deadline for the consortium to submit a “firm proposal” to November 10.
In June 2022, the European Commission approved Portuguese state aid for the airline’s restructuring support amounting to 453.25 million euros in loans and state guarantees, including measures such as restructuring the corporate structure and divesting a controlling interest (51%).
