Canary Islands-based regional Binter is reported to be considering acquiring a ‘minority, but strategic’ stake in SATA, the publicly owned airline group of the Azores.
In an article published in Spanish business website Vozpopuli, the Azores regional government has been trying to privatise, at least in part, Azores Airlines (SATA’s international subsidiary). However, the sell-off has faced opposition both domestically and from Brussels.
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Vozpopuli reports that SATA group has made losses exceeding 280 million euros since 2021 , with eleven administrators and four presidents, with the latest resignation of Rui Coutinho, forced the urgent appointment of the financial director, Tiago Santos.
READ: Azores Airlines privatisation to launch in January
For Binter’s part, an investment in SATA makes business sense. Binter already operates codeshare agreements with SATA as well as healthcare transport services. A stake in SATA could potentially open the door to routes to the US and Canada as well as the ability to create a Peninsula-Macaronesia frequency corridor. There is also the potential to open routes into the growing West African travel market.
However, Binter is not the only operator reported to be eyeing up the troubled airline group.
The Atlantic Connect Group consortium , formed by car maker Stellantis ex-CEO Carlos Tavares and other investors, put 17 million euros on the table for 85% of Azores Airlines. However, this offer came with a number of conditions, such as the regional government handling debt and liquidity before the transaction can take place.
The post Binter looks to acquire SATA Azores Airlines stake appeared first on Aviation Business News.
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