The Newtour/MS Aviation consortium today deemed a statement issued by the Civil Aviation Pilots’ Union (SPAC) “unacceptable” and containing “falsehoods,” amid the ongoing privatization process of Azores Airlines.
In a statement sent to the Lusa news agency, the consortium expressed surprise over the SPAC’s statement, which it says “hinders the necessary trust for a process meant to be serious and calm,” while spreading “a series of falsehoods” that “jeopardize the future of SATA and the business reputation of those involved.”
On December 9, 2024, the President of the Regional Government of the Azores, José Manuel Bolieiro, confirmed that SATA and the Newtour/MS Aviation consortium were negotiating the privatization of Azores Airlines and that the region would take on the airline’s debt.
The consortium emphasizes that from the outset, it recognized dialog with workers and their union representatives as crucial. It highlights maintaining regular communication, starting with a meeting request to the union on May 13 of this year, resulting in “the parties sitting together for the first time, 10 days later.”
“In the ensuing months, six meetings took place between the company’s union delegates and the Consortium, represented either by legally competent individuals or the entrepreneurs themselves,” the statement notes.
On July 3, “an email reached the SPAC’s inbox showcasing the maturity of the dialogue between the parties. In it, the Consortium acknowledged the need to optimize operational costs to ensure the success of Azores Airlines post-privatization. It was also noted that while changes to the company’s agreement rules might be possible, the commission emphasized continued discussions with the SPAC leadership.”
The consortium maintains that this “constructive spirit fueled a responsible optimism, leading to a value proposal for acquiring the company within weeks,” asserting all communications are “well-documented.” It therefore questions SPAC’s public stance, “which starkly contrasts the ongoing talks’ spirit.”
“The SPAC cannot claim — because it is plainly false — that it did not receive any formal proposal. What is different is asserting it lacked a mandate from the Company Assembly to commit on behalf of the pilots, but that is an internal issue the Consortium will not interfere in,” it stated.
The consortium reiterates its readiness to discuss the proposal submitted to the union and insists on analyzing it “honestly,” hoping a general assembly is soon convened for pilots to decide on their and SATA’s future.
“SATA’s situation is critical and deteriorates daily. Any project genuinely aiming to ensure the airline’s viability will only materialize with workers’ involvement and commitment,” it warns.
On Thursday, SPAC asserted that pilots would not accept being blamed for any potential failure in Azores Airlines’ privatization by opposing a 10% salary cut.
“Pilots do not block the privatization. We demand formal proposals, integrity checks, and respect for the Company Agreement. Without assembly mandate and clear guarantees — deadlines and quantified benefits applicable to the entire company — there are no negotiations,” stated SPAC Vice-President Frederico Saraiva de Almeida, in a release.
The union confirmed that up to now, it hadn’t received any proposal “formally framed, signed by a legally competent party, and accompanied by a business plan,” regarding Azores Airlines’ privatization, adding it will “never negotiate without explicit mandate from its members, to be verified in a company assembly.”
The union disclosed that “the consortium unilaterally submitted a document aiming to reduce pilots’ payroll by about 10%,” to which they “did not respond, due to lack of mandate and minimum requirements for serious consideration.”
On Tuesday, the Regional Secretary for Finance, Planning, and Public Administration, Duarte Freitas, indicated the privatization process was in “the final stages.”
In June 2022, the European Commission approved a Portuguese state aid for the airline’s restructuring, totaling €453.25 million in loans and state guarantees, including restructuring measures and divestment of a controlling stake (51%).
