The Azores Regional Government has authorized SATA’s board of directors to begin direct negotiations for the sale of a majority stake in Azores Airlines (SATA Internacional), marking a pivotal turn after a failed international tender left the process at a standstill.

The move comes after the public privatization bid was formally closed without awarding the contract to the sole remaining consortium, AtlanticConnectGroup. In a statement released Wednesday, the Regional Government said the new direct-sale approach will proceed “within the legal framework” and in line with commitments made under the restructuring plan for the SATA Group.

Officials acknowledged that the 2023 tender process ultimately fell short. According to the government, the jury’s final report identified “significant weaknesses” when measured against established criteria and strategic objectives, making it impossible to reach a decision aligned with the region’s public interest. Still, authorities emphasized that the process itself was conducted properly, citing full compliance with principles of legality, transparency, rigor, impartiality, and fairness.

Under the new plan, the terms of sale will be designed to safeguard the Azores’ strategic interests, protect workers’ rights, and ensure continuity of essential air connections—both within the archipelago and between the islands and the Azorean diaspora abroad.

To reinforce oversight, the government has appointed economist Augusto Mateus—who chaired the previous tender jury—as an independent supervisor of the process. A Special Monitoring Committee will also be established, led by João Carlos Teixeira of the University of the Azores, alongside Teresa Tiago and António Maio.

The administration says it will also implement a corruption risk-prevention plan, underscoring that the shift to direct negotiations is intended to streamline the process and meet European Union deadlines tied to SATA’s restructuring plan, now extended through December 31.

Meanwhile, the VictorAir consortium—another interested party—has signaled readiness to step in, warning that the window for a viable solution is rapidly closing. In a statement, the group stressed that “immediate, coordinated, and technically grounded action” is essential to securing a sustainable future for SATA and aviation in the Azores.

“With an extremely demanding timeline, every lost month significantly reduces the range of viable solutions,” the consortium cautioned, adding that managing a transaction of this scale while maintaining daily airline operations requires specialized expertise and reinforced resources.

“This is ultimately a question of execution,” VictorAir said. “Not of decision.”

in Diário Insular, José Lourenço-director

Translated into English as a community outreach program by the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL), in collaboration with Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno. PBBI thanks Luso Financial for sponsoring NOVIDADES.