Entrepreneurs Bid to Protect Azores Airlines and Key Routes

In a last-minute manoeuvre, Atlantic Connect Group has lodged a binding offer for 85% of Azores Airlines, reshaping the privatisation stakes of the SATA group as the deadline looms and raising fresh questions about the future of island connectivity.

Shared Vision for the Islands

The four entrepreneurs behind the bid have presented a unified front under Atlantic Connect Group, promising to safeguard the airline’s role as a vital link between mainland Portugal and the Azores. Their proposal reflects a strategic vision that balances financial realism with regional priorities, pledging to preserve key international routes while excluding inter-island shuttles to maintain political support on São Miguel and Terceira. By speaking with one voice and coordinating directly with employees, the consortium aims to expedite decision-making and reassure stakeholders that continuity and growth can coexist.

Profiles Behind the Deal

Carlos Tavares brings a track record of corporate turnarounds from his tenure at Stellantis, viewing aviation as the next frontier for his restructuring skills. Tiago Raiano, helming Newtour’s tourism empire, bets on seamless integration between travel services and airline operations. Wine magnate Paulo Pereira offers an intimate understanding of Portugal’s hospitality landscape through his Douro estate, while Nuno Pereira contributes decades of flight operations expertise as the former CEO of BestFly. Together, they leverage diverse strengths—from debt management to customer experience—in a bid to revive an airline once celebrated as SATA International.

Debt, EU Aid and the Price Tag

Azores Airlines arrives on the market carrying a complex €766 million debt load within the SATA Holding structure, offset partially by €453 million in state aid approved by Brussels in 2022. The consortium’s modest cash offer, reported at €17 million, factors in this liability and signals a willingness to negotiate debt haircuts and capital injections. This arrangement satisfies EU competition rules while offering the regional government a path to comply with aid-recovery deadlines, set for 31 December 2025. A successful sale would avert the spectre of a grounded carrier and the diplomatic fallout of stranded diaspora communities from Boston to Toronto.

Political and Union Endorsements

Securing consent from the SPAC pilots and cabin crew representatives was a critical milestone, with 75% of votes in favour following months of negotiations. Their endorsement underscores confidence that job security and wage restoration measures will be honoured. The Azores Government, led by José Manuel Bolieiro, has signalled readiness to accommodate a potential extension of the EU deadline, acknowledging that market conditions may necessitate further dialogue with Brussels. For regional authorities, the proposal offers a compromise between outright privatisation and the risk of corporate collapse.

Implications for Portugal’s Skies

Mainland travellers stand to benefit if the transaction preserves Azores Airlines’ Lisbon hub slots, easing pressure on a network already strained by summer traffic. Continued operations under private stewardship could also revive seasonal charters to Funchal and Barcelona, injecting fresh competition into Portugal’s short-haul market. For carriers like Ryanair and easyJet, renewed rivalry often translates into lower fares and greater frequency—advantages that ripple through the national tourism economy and support local businesses reliant on reliable air service.

Next Hurdles

With documentation now under review by a jury chaired by economist Augusto Mateus, the focus shifts to detailed due diligence on fleet valuations, labour guarantees and slot allocations. Only after this assessment can negotiations on shareholder agreements and financing proceed. As island communities await clarity, each incoming flight to Ponta Delgada becomes a reminder that the success of this privatisation will hinge on balancing public interest with private capital in Portugal’s most remote skies.