Azores Airline Company Undergoes Significant Changes in Management Structure
In a blunt statement, the parliamentary group ain't pulling any punches – they're demanding some straight talk on the current state and future prospects of the ailing airline, particularly given the stack of red ink it's been racking up lately. The privatization proceedings, kickstarted back in March 2023, have made about as much progress as a sloth on roller skates.
José Pacheco, leader of Chega/Azores, dropped some hard numbers in response to the finances of the SATA group. It turns out that both Azores Airlines and SATA Air Açores ended 2024 with a combined loss of a whopping €82.8 million – a near-double increase compared to the previous year. Azores Airlines alone saw a record €71.2 million deficit, up from a measly €26 million the year before.
Pacheco didn't mince his words, likening SATA's financial situation to a bottomless pit and urging some immediate action. He kept hammering on his party's stance that Azores Airlines is a money pit that needs to be shut down, not privatized, as it continues to drain taxpayers' coffers.
SATA tried to shift some of the blame, attributing part of the losses to a series of exceptional factors such as crummy weather, strained infrastructure, and higher personnel costs thanks to fresh labor agreements. They also brought up a legal spat with Hifly over an A330 aircraft, known as the "Cachalote," with related costs skyrocketing past €30 million.
SATA's board is currently working on a Financial Sustainability Plan, containing 41 precarious measures aimed at boosting efficiency and scraping together €65 million in savings. CEO Rui Coutinho held his ground, expressing confidence that 2024 marked a turning point for the company, and we should expect a financial revival by 2025. He even offered up some early indicators suggesting a rosy start to the year.
But let's not forget the long list of challenges that SATA faces, including the colossal financial burden and various operational squabbles. With the ongoing losses piling up, questions about the airline's long-term sustainability are bound to surface. But hey, no one's talking about shutting it down just yet – just yet.
Portugal's SATA group, specifically Azores Airlines, faced a significant financial crisis in 2024, with an combined loss of €82.8 million, according to José Pacheco, leader of Chega/Azores. In light of this news, there's growing speculation within the industry about SATA's long-term sustainability and the potential impact on Portugal's finance and business sector.
