The regional government of the Azores, owner of Grupo SATA, is looking to convert EUR160 million euros (USD182 million) into equity in future Azores Airlines (S4, Ponta Delgada) owner SATA Internacional to allow improved conditions for potential investors in the airline, Bloomberg reported.

“We want to give investors a clean asset, with full management control,” the airline's chief executive Tiago Santos said. His comments come after SATA was forced to launch a new privatisation process for the carrier. The European Commission requires the sale to be finalised by the end of 2026 as part of the earlier restructuring aid conditions.

Speaking to ch-aviation in June, Santos said that he wants the future private investor to enter an agreement “free from the financial backpack that came from past issues.”

SATA plans to cut jobs at Azores Airlines, with some employees being moved within the group, Santos added when speaking to Bloomberg.

SATA Internacional will become the formal owner of Azores Airlines after the split, with SATA Group formally selling at least a 75% stake in that entity. Upon announcing the sale, the government stressed that buyer obligations include not moving headquarters and management from the Azores; a ban on collective redundancies; and the continued operation of certain key routes.