The privatization process of SATA International — the international operation of SATA Group, commercially known as Azores Airlines — is going through this year. This week, SATA’s owner, the Azores government, disclosed more details on the process, which has been required by the European Commission as a countermeasure to its bailout during the COVID-19 pandemic.

Azores Airlines serves as the lifeline between the Azores Archipelago and the European mainland, but also serves as an important connection to the Azorean diaspora in North America.

The plan, disclosed by the Azores government and republished by the Portuguese media, forecasts that the regional administration will sell a stake between 51% and 85% of the airline.

«According to commercial law, when [a shareholder] has less than 10% of the capital of a given firm, rights are lost in terms of [presence at] the board, and the region wishes to keep such rights», said the Azores’ Finance secretary, Duarte Freitas, in a press conference in the city of Horta.

According to Freitas, as reported by Observador, the official notice for interested parties should be open March 15 and 17, with opening for applications between June 15 and 17 and a pick «between September and October».

The winning bid, Freitas added, will require SATA’s new owner to keep certain routes — depicted below — for 30 months.

The privatization process will not comprise SATA Group’s interisland business, SATA Air Açores, which operates as a separate unit. It should also exclude SATA Handling, although that was one of the requirements of the European Commission back in 2021.

SATA Group’s CEO, Luís Rodrigues, told the Economy commission of the Azorean parliament there were «half a dozen» parties which expressed their interest in the sale, O Jornal Económico reported last December. According to the executive, he expected only «two or three» would ultimately file an offer.

Rodrigues was appointed the next chairman and CEO of TAP Air Portugal by the Portuguese national government, as reported by Aviacionline early this week.

To replace him, Azores’ regional president, José Manuel Bolieiro, will appoint Teresa Gonçalves, the Açoriano Oriental reported. Gonçalves is currently the Chief Financial Officer of SATA Group.