"The Newtour/MS Aviation consortium learned today, through the media, of the decision made by the Regional Government of the Azores not to proceed with the privatization process of Azores Airlines due to an alleged significant change in the economic and financial conditions taken into account in the initial evaluation of the airline", the statement begins.

The entity stressed that throughout the process, "it was always committed to the success of the operation" and that it remained "silent for the sake of independence, transparency and, above all, out of institutional respect for all stakeholders", namely "for SATA Internacional and its employees".

However, it said, in view of this decision, "silence no longer makes sense".

"Newtour/MS Aviation does not agree with the decision of the Regional Government of the Azores not to proceed with the privatization process of Azores Airlines", it stressed, assuring that it "formally does not know the reasons behind this decision".

The consortium considers that "the reason given is unfounded, namely because the negotiation phase provided for in the tender rules could accommodate a possible change in the economic and financial conditions taken into account in the initial evaluation of the airline".

"Newtour/MS Aviation finds it strange that it has been denied access to several tender documents, namely the final report prepared by the jury, as it has requested it several times and through the appropriate channels", indicating that "it only knows what has been disclosed by the media".

Therefore, "the consortium will analyze the reasons that will be presented by the Regional Government of the Azores and resort to all legal mechanisms at its disposal", adding that "it will do everything to defend, on the one hand, the future of SATA Internacional -- Azores Airlines and its employees and, on the other hand, the position of the consortium members whose credibility and reputation were questioned during the tender".

The Government of the Azores cancelled the privatization tender of Azores Airlines and will launch a new one, claiming that the company was valued at six million euros at the beginning of the process and is now worth 20 million.

"[The Council of Government] decided not to proceed with the privatization process of Azores Airlines due to the significant change in the economic and financial conditions taken into account in the initial evaluation of the company. The current privatization process of Azores Airlines is therefore cancelled", announced today the vice-president of the Regional Government of the Azores (PSD/CDS-PP/PPM), Artur Lima.

In early April, the jury of the public tender for the privatization of Azores Airlines submitted the final report and maintained the decision to accept only one bidder, but admitted reservations about the ability of the Newtour/MS Aviation consortium to ensure the viability of the company.

The Board of Directors of the SATA group, led by Teresa Gonçalves, who has since resigned, also expressed "reservations about the Newtour/MS Aviation consortium and about the limitations of the bidder" in the opinion sent to the Regional Government.

Also Read: SPAC satisfied with the cancellation of the tender for the sale of Azores Airlines (Portuguese version)