Azores Government Approves €55 Million Guarantee for SATA and Advances Handling Privatization

The Government of the Azores has approved a €55 million guarantee to support SATA’s restructuring plan while also authorizing the terms for the full privatization of SATA Handling, the group’s ground handling subsidiary.

The state guarantee will back a loan provided by Deutsche Bank, helping strengthen SATA’s liquidity as part of the restructuring program approved by the regional government. The financing carries a final interest rate of 4.5% with a maturity of 84 months.

The regional government also approved the tender documents for the sale of 100% of SATA Handling through a competitive negotiated process. Prospective investors will be required to demonstrate financial strength and relevant experience in ground handling, transportation, logistics or infrastructure, while presenting a long-term strategic plan for the business.

Under the sale conditions, the successful bidder must maintain the company’s headquarters and management in the Azores for at least 30 months, preserve collective labor agreements and continue providing ground handling services at all nine airports and aerodromes in the archipelago. The buyer will also be prohibited from implementing collective layoffs or eliminating positions during that period.

The measures form part of the broader restructuring of the SATA Group, which also includes the planned privatization of at least 75% of Azores Airlines by the end of 2026 under commitments agreed with the European Commission.