EU approves €453M SATA lifeline
The European Commission has approved a State capital injection of €453.25 million for the Azores airline SATA.
The cash for SATA Air Açores is to be used to finance a restructuring plan which should be completed by 2025.
A communiqué released by Brussels states: “The package will enable the airline company to finance its restructuring plan and restore its long-term viability”.
In April 2021 the Government notified the Commission of its intention to provide “financial support for SATA’s restructuring plan for the period 2021-2025”.
The financial package is divided into three parts: First, €144.5 million. Second, the assumption of a debt totalling €173l8 million, to a total cash-convertible liquidity of €318.25 million.
Also foreseen is third, a State-backed guarantee of €135 million to help SATA to obtain financing from the banking sector.