Azores Airlines’ privatisation has attracted a wide range of potential buyers, from financial investors to airlines and aviation-related companies, ECO News reports, with the deadline for non-binding bids expiring on Monday.

SATA Holding received eight expressions of interest for the sale of at least 75 percent of the airline, and six of them met the requirements set out in the tender rules and were invited to submit non-binding offers.

Financial proposals

The airline operates international routes and connections between the Azores islands and mainland Portugal.

The offers must include a financial proposal stating the euro price for the shares, the bidder’s contribution to the airline’s capitalisation, the terms and timetable for that funding, and how the buyer would secure the financing needed for the deal, ECO News reports.

SATA Holding has not disclosed the companies’ identities.

Binding-offer stage

Interested parties must also submit a technical proposal containing a strategic plan for the company, including how they would support the Azores hub and air links between the autonomous region, mainland Portugal and the Azorean diaspora.

When all the bids are received, SATA Holding must prepare an evaluation report for the privatisation’s independent supervisor, economist Augusto Mateus, who will issue an opinion to the board before selected bidders move to the binding-offer stage.

The European Commission

The Azores regional government launched the new sale process in March through a private negotiation after moving Azores Airlines’ liabilities to SATA Holding to make the asset more attractive.

The sale of Azores Airlines is part of commitments made under a restructuring plan, which was approved by the European Commission in June 2022 following state aid to the SATA group, which amounted to €453.25 million.

SATA is also preparing the full sale of its handling business, which has received eleven expressions of interest.