The Government Council of the Azores approved a resolution authorizing the payment of 42.8 million euros to SATA Air Açores to restore the financial balance for the concession of air transport services between the islands, it was announced this Wednesday.
The resolution was published in the Official Journal of the Azores and authorizes the payment to SATA Air Açores, which ensures air transport between the nine islands of the archipelago, of the amount of 42,839,848 euros, relating to the restoration of the financial balance of the Concession Contract for Regular Air Transport Services in the Interior of the Autonomous Region of the Azores – 2021-2026.
A resolution of the Government Council No. 141/2021, of June 2, authorized the holding of a public tender, with international advertising, for the formation of a concession contract for the public service of regular air transport within the region, for a period of five years.
Following this public tender, on September 28, 2021, between the region and SATA Air Açores, the “Concession Contract for the Regular Air Transport Service in the Interior of the Autonomous Region of the Azores – 2021 – 2026” was signed, coming into effect on November 1, 2021.
According to the resolution consulted today by the Lusa agency, the amount of 42.8 million euros is intended to offset costs with “flights not foreseen in the fourth year of execution of the concession”, in order to “accommodate the growing number of passengers” disembarking on inter-island flights, which “has increased by around 82% since the date of preparation of public service obligations”.
According to the Azorean executive (PSD/CDS-PP/PPM), in addition to the increase in operational activity compared to what was contracted, the increase in airport taxes and fuel prices and the impacts of the global inflationary crisis “have significantly increased the concessionaire’s operating costs”, with “the possibility of unilaterally increasing the price of transport tariffs that are fixed in public service obligations being prohibited”.
The Regional Government also states, in the resolution, that it requested an independent entity to carry out an assessment with the aim of calculating the losses incurred by the concessionaire of the public air transport service within the nine islands, “which confirmed and quantified their existence”.
Thus, the Government Council resolved to “authorize the payment to SATA Air Açores of the amount of 42,839,848 euros, relating to the restoration of the financial balance of the Concession Contract for Regular Air Transport Services in the Interior of the Autonomous Region of the Azores – 2021-2026”, reads the resolution signed by the president of the Azorean Government, José Manuel Bolieiro.
The resolution, approved by the Regional Government Council, on Tuesday, delegates to the regional secretary of Tourism, Mobility and Infrastructure, “with the power to sub-delegate, the competence to proceed with the execution of the payment”
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