Azores, Portugal, May 21, 2026 (Lusa) – The proposed specifications for the privatisation of SATA Internacional/Azores Airlines recommend the sale of an equity stake of at least 75% of the carrier and prohibit redundancies or collective dismissals for a period of 30 months, they said on Thursday.
The tender document, the SATA board of directors proposed to the Azores government and seen by Lusa, establishes a private negotiation model for the airline's privatisation, which must be completed by the end of 2026, according to the restructuring plan approved by the European Commission.
"The private negotiation takes the form of a process involving the sale of shares representing a stake of no less than 75% of the share capital of SATA Internacional, possibly accompanied by operations to alter the capital structure,” the document said.
The sale of at least 75% of the company marks a departure from the previous tender, which provided for a minimum sale of 51% and a maximum of 85%; that process was closed on 6 March without privatisation, after the selection panel and SATA’s management concluded that the bid from the Atlantic Connect Group, the only one accepted, posed unacceptable risks.
In the draft tender specifications, which will be presented to the regional government council, the buyer is obliged not to carry out collective redundancies or to cut existing jobs at SATA Internacional for a minimum period of 30 months and to respect the existing employment agreements.
The document also sets out the obligations to maintain, for a minimum period of 30 months, the company’s headquarters and effective management in the Azores and the routes between São Miguel and Terceira (Azores), Lisbon and Porto, and the connections between the region, the US and Canada.
The buyer is also obliged to maintain Azores Airlines' Air Operator Certificate for a minimum of 3 years.
The proposed tender specifications set out an initial phase for the pre-qualification of interested parties, a second phase for the submission of non-binding bids, a third phase for the submission of binding bids, and a potential final negotiation phase.
“Proof of suitability and financial capacity are requirements for interested parties to participate in the private negotiation,” the tender documents said.
Among the criteria for selecting bids are the price offered for the purchase of the shares, the commitment to contribute to strengthening the company’s economic and financial capacity, the absence of legal or economic constraints, the guarantee of compliance with labour commitments and the promotion of shareholder stability through the implementation of a governance model that takes into account the specific nature of Azores Airlines.
Amongst the key assessment benchmarks is the presentation of an appropriate, feasible, coherent, and sustained long-term strategic plan, which must contribute to strengthening the Azorean hub by maintaining connections to the Portuguese mainland and the diaspora, whilst ensuring connectivity with SATA Air Azores (the inter-island carrier) to guarantee accessibility across the entire region.
Demonstrating the company’s contribution as a key pillar of the Azorean economy is also one of the evaluation criteria in the tender specifications SATA’s management proposed to the Azores government.
The process will be overseen by an independent supervisor, the economist Augusto Mateus, who chaired the jury for the previous privatisation tender.
On 7 May, SATA’s chair, Tiago Santos, speaking at the parliament, highlighted the importance of initiating a new process structured differently, based on private negotiation and with clarity regarding debt liabilities.
RPYP/MYAL // ADB.
Lusa
