Communiqué from the Council of the Government
Horta
The Council of the Government, which met on May 21, 2026, in Horta, decided to adopt the following measures:
1. Approve the proposal by the Board of Directors of SATA Holding regarding the tender specifications setting out the terms and conditions of the private negotiation for the divestment of no less than 75% of the share capital of SATA Internacional – Azores Airlines.
This decision follows an assessment of the previous procedure, which concluded that the proposal put forward at the time did not adequately safeguard the interests of the Autonomous Region of the Azores, the company and its employees, as it exposed the seller to potentially unlimited liabilities. It was based on a capitalisation model mainly supported by the public sector and provided for a price dependent on future results, thereby reducing the predictability and protection of the asset’s value.
The new procedure that has now been approved is structured as a specific negotiation process, incorporating greater flexibility and adaptability, whilst ensuring that the principles of transparency, competition and equality among interested parties are upheld.
The process will unfold in successive stages, including an initial phase to shortlist interested parties based on their suitability and financial capacity, followed by the submission of non-binding proposals, then binding proposals supported by in-depth due diligence and, if necessary, a final negotiation phase, always with due regard for the regional public interest.
The procedure will be overseen by an independent supervisor, Professor Augusto Mateus, with the final decision subject to approval by the Government of the Azores.
The Tender Specifications now approved set out the minimum obligations to be met by the prospective buyer, namely: maintaining the company’s headquarters in the Autonomous Region of the Azores for a minimum period of 30 months, the safeguarding of jobs, with no collective redundancies during the same period, and the guarantee of the continuity of air links between the Azores and the main domestic and diaspora destinations, also for 30 months.
2. Approve the commencement of the procedure for the divestment of the entire share capital of SATA Handling, S.A., and stipulate that SATA Holding, S.A. shall, as a matter of urgency, undertake all preparatory, instrumental and necessary steps to bring this about, through a private negotiation process.
The Government of the Azores sets out a clear set of guidelines for the Board of Directors of SATA Holding, specifically to ensure that the process is conducted in an open, transparent and non-discriminatory manner, with the essential conditions of the divestment being defined in advance in a series of specifications to be submitted for approval by the Council of the Government.
It was also determined that the process must explicitly safeguard the strategic interests of the Autonomous Region of the Azores, including the continued provision of ground handling services on all islands and the protection of workers’ rights, in accordance with the applicable legal framework and collective bargaining agreements.
The Council of the Government further stipulated that the procedure will be monitored by an independent supervisor and that the Regional Departments with financial and sectoral jurisdiction will exercise powers of guidance and ongoing monitoring. In turn, the Board of Directors of SATA Holding will be responsible for overseeing the process and submitting the final decision on the divestment to the Regional Government for approval.
