Azores’ SATA faces extensive restructuring as financial aid ruled illegal

Azorean carrier SATA Air Acores is facing the prospect of substantial restructuring after European regulators declared that a previous government’s capital injections to the company amounted to illegal state aid. The Portuguese archipelago’s secretary for finance, Joaquim Bastos e Silva, has disclosed during a legislative assembly that nearly E73m in support – put in place during 2017-20 – breached EU rules, because prior approval was not obtained. “SATA must return this huge amount to the [regional community] and this has to be done before any negotiations about urgent restructuring,” he says. The EC had approved, in August, an urgent rescue package for SATA including E133m in liquidity support. But it simultaneously warned that it was investigating the previous capital injections provided to the airline.<br/>