The European Commission approved on August 18th a state aid from the Region to SATA, in the form of a guarantee, to obtain a loan of 133 million euros.
But, on that same day, the European Commission also announced that it had opened a survey to assess the recent capital reinforcements by the Government of the Azores to the airline, amounting to 106.5 million euros, which will be paid in annual instalments until 2023.
This aid will have to comply with European Union regulations on state aid to companies in difficulty, notably on whether competition is distorted. This is what the European Commission will assess, based on the justification to be provided both by the regional and the national governments.
The Azores government press release states that "following the European Commission's request for detailed and accurate information, the Government of the Azores considers the procedure of rescue aid to SATA of the utmost importance for the Autonomous Region of the Azores and for the Portuguese State, requiring extensive articulation between the Government of the Republic, the Regional Government of the Azores and the beneficiary".
The Government of the Azores also states that "in this regard, it has been proposed to extend the deadline for a response by one month, given the nature of the matters to be verified and clarified, the territorial discontinuity between the Autonomous Region of the Azores and the mainland and the limitations resulting from Covid-19, which condition the provision of human resources.”
The press release also states that the request for extension argues that the submission of comments by the Portuguese State "presupposes the collection and analysis of substantial information and documentation on SATA Air Açores and the provision of air transport services in the Autonomous Region of the Azores".
As reported by Antena 1 Açores, a law firm was hired in Lisbon to better prepare the defense of the Region's position before the European Commission.
