Horta, Portugal, July 9, 2025 (Lusa) - The Azores Regional Secretary for Finance, Planning and Public Administration acknowledged on Wednesday that the privatisation of Azores Airlines must succeed to avoid insolvency, which could cost more than €300 million.
“Insolvency means we will manage the existing liabilities and could also incur an additional €300 million in compensation payments to employees,” warned Duarte Freitas.
The minister was speaking in the Azorean parliament in Horta during an emergency debate on the future of the Azorean airline, promoted by Chega.
Duarte Freitas added, however, that negotiations to complete the privatisation process “are progressing at a good pace”, both with the Newtor/MS Aviation consortium and with the European Commission, with whom the Regional Government has committed to completing the sale of 76% of the company’s capital.
“The European Commission has already formally stated that everything is proceeding as planned, and we confirmed this during our most recent meetings with the European Commission; we are fully confident in this regard,” assured the regional finance minister, adding that he was “calm” about the conclusion of this process.
Chega has scheduled an urgent debate to highlight the regional airline’s “economic challenge” and substantial losses of €71 million in 2024.
“Azores Airlines demonstrates the need for renewed management, heightened political attention and greater respect for taxpayers,” Francisco Lima, a Chega MP, remarked. “The carrier currently requires comprehensive financial restructuring, and the privatisation process has continued for months or years while the company seeks a successful outcome.”
The regional secretary for Tourism, Mobility and Infrastructure, Berta Cabral, explained in plenary that Azores Airlines alone recorded a loss of €71 million in 2024, but pointed out that a large part of this amount (€53.4 million) is due to the “extraordinary impact” of costs related to company agreements, maintenance, provisions, depreciation, amortisation and impairments.
However, she expressed her confidence in the current Board of Directors of the regional airline and pointed out that Azores Airlines’ financial results for the first few months of this year “show a positive trend”.
The Left Bloc MP, António Lima, offered constructive criticism on the performance of the Government and the SATA Group’s management, which he accuses of “strategic management errors” that could “cost the company its very existence”.
Pedro Neves, from the PAN, recalled, however, that Chega voted in favour of the regional budget and approved all the guarantees and letters of comfort that the current coalition Regional Government (PSD/CDS-PP/PPM) granted to SATA.
“Please present your case now,” he stressed.
Socialist Carlos Silva recalled that the government promised to “save SATA,” but in reality, the company “has worsened,” with “wages still unpaid” and debts to social security.
Nuno Barata, from the IL, highlighted the need for a “significant economic adjustment” regarding SATA’s current impact on the region’s accounts and said that, if he had government responsibilities, he would have already dismissed the current chairman of the Board of Directors, Rui Coutinho.
For his part, PSD deputy Paulo Simões argued that the “challenging choices” made by governments led by the Socialist Party “significantly affected” the airline, leaving a substantial legacy that the right-wing parties are now trying to rectify.
João Mendonça of the PPM shared this view, recalling the “loss-making routes” created by socialist governments and the “allocation of financial aid without the proper legal framework,” which led to the European Commission's intervention itself.
“Because of all this, we must act to secure SATA’s future,” stated Pedro Pinto of the CDS-PP, who considers it essential to invest responsibly in the airline and ensure the company’s sustainability.
RF/ADB // ADB.
Lusa
