SATA, particularly Azores Airlines, is becoming a problem for regional finances. The problem is both long-standing and current. From the European Union’s perspective, everything that could be done has been done, namely the injection of hundreds of millions to rebalance the company and accelerate privatization, but this does not seem to be enough (it is not clear how 2025 will pan out), and losses are mounting every year. The privatization process has been difficult, even with the Region assuming the debt and the sale price being symbolic.

The emergence in the final phase of people “leaning” on the company, who are keeping their interest in privatization on the table, people with established credentials in the business world, leaves little hope that the process will come to a successful conclusion in the current semester. We would never have thought it possible to reach the point of advocating here that Azores Airlines should be sold off as soon as possible. We have always understood that a flag carrier is a fundamental strategic asset for the economic development of an archipelagic region, ensuring the mobility of the Azoreans and acting as a moralizing influence on the other airlines that “fly” the Azores.

The public sector should only be involved if there is no private company that can do it better, provided that public service obligations are involved and supported by the State. However, even under these conditions, it must be well-managed, and this has clearly not been the case, as the company has always been at the mercy of political interests, i.e., certain economic policies. At a certain point, it was understood (is this still the case?) that tourism was the key to our development. Infrastructure began to be built, and to fill it, tourists were needed. To attract tourists, we had to go to the markets, and for that to happen, we also needed an airline. SATA started opening routes to every destination imaginable, many without any feasibility studies, and the disastrous investment in unsuitable aircraft did not help either. It still suffers from the problems of a small company: a limited number of aircraft, which, without backup, need to fly to be profitable, and the options available, given the results, were not the best. And the bleeding was not stopped when it was still possible.

At this point, the company should be transferred to private hands as soon as possible, as it is polluting the regional finances. Save Sata Air Açores, the regional carrier, and commit the future new owner of Azores Airlines to serving the region and its diaspora. The outcome is clear and causes deep sorrow… but the jewels, although eternal, are worth much less than the fingers that, although ephemeral, support them.

In Diário Insular, editorial for July 3, 2025

NOVIDADES will feature occasional opinion pieces from various leading thinkers and writers in the Azores, providing the diaspora and those interested in the current state of the Azores with insight into the diverse opinions on some of the archipelago’s key issues.

Translated to English as a community outreach program from the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL).