LUSA 12/11/2024

Lusa - Business News - Portugal: Azores government confirms talks to privatise regional airline SATA

Ponta Delgada, Azores, Portugal, Dec. 10, 2024 (Lusa) - The head of the regional government of the Azores has confirmed that SATA and the Newtour/MS Aviation consortium are negotiating the privatisation of Azores Airlines and said that the region will bear the airline's debt.

In an interview on Monday evening with RTP and Antena 1 in the Azores, José Manuel Bolieiro guaranteed that the Azorean executive (PSD/CDS-PP/PPM) "is not involved in any negotiations", but confirmed that SATA's management is negotiating with the only consortium admitted to the Azores Airlines privatisation tender.

"First clarification: we want to privatise Azores Airlines. Secondly, we will comply with what has been established with the European Commission. Thirdly, the government is not involved in negotiations because that is the responsibility of the holding company's management," he said.

Asked when the negotiations should end, José Manuel Bolieiro replied that he "doesn't know", insisting that it was "the responsibility of the board of directors".

Nor did the head of the regional government rule out the possibility of a new tender for the sale of the regional carrier.

"Nothing is certain because we still haven't heard any definitive decisions, and nothing has been ruled out. In defence of the region's interests, I will be attentively awaiting what SATA's board of directors proposes to the government," he stressed.

On May 2, the regional government of the Azores announced the cancellation of the Azores Airlines privatisation tender and the launch of a new one, claiming that the company was valued at €6 million at the start of the process and is now worth €20 million, denying that reservations about the competing consortium played a role in the decision.

The decision came after, in April, the privatisation tender jury upheld the decision to accept only one bidder, admitting reservations about the Newtour/MS Aviation consortium's ability to ensure the company's viability.

The candidate consortium filed an injunction against the executive's decision (which was dismissed by the court), and in September expressed "concern about the uncertainty and apparent inertia surrounding the privatisation process".

On Monday, José Manuel Bolieiro emphasised that the regional government "merely drew the attention of the board of directors" to the new assessment of the company's worth and confirmed that Azores Airlines' liabilities will be taken over by the region.

"We will try to ensure that the sale of this asset can minimise the negative impact of all these liabilities generated by mismanagement over many, many years," he said.

In an interview that lasted more than an hour, José Manuel Bolieiro did not commit to deadlines for the full capacity of the Ponta Delgada hospital (where a fire broke out in May), but emphasised the "impressive speed" with which the modular infrastructure is being assembled.

Regarding the criteria for prioritising access to daycare for children of parents with jobs, the head of the Azorean government said that he doesn't "live by ideological prejudices", nor by "political rhetoric".

"What is unacceptable is that the children of working parents should be penalised," he said.

On 12 July, the Azores parliament approved a Chega resolution (without the force of law) recommending that the regional government change the rules on access to free crèches in the Azores to give priority to children with working parents, justifying the change with the lack of places for the growing demand in the archipelago.

 

 

RPYP/AYLS // AYLS

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