Binter and Icelandair among interested buyers as Azores Airlines privatisation restarts

The privatisation of Azores Airlines is moving forward again, with between six and eight parties reportedly expressing interest in acquiring a stake in the airline. Among the most prominent potential investors are Binter Canarias and Icelandair.

According to Tiago Santos, the Azorean regional government is expected to receive revised privatisation terms shortly as the process shifts from a failed public tender to a direct negotiation model. The sale is intended to cover at least 51% of the carrier, although a larger stake could be offered to give a future investor greater strategic control.

The renewed privatisation follows the collapse of an earlier attempt in which Atlantic Connect Group offered €17 million for 85% of the airline but failed to provide sufficient financial guarantees. The process is tied to the restructuring of SATA Group after the European Commission approved €453 million in state aid in 2022. Brussels has set a deadline of 31 December 2026 for the airline to be transferred into private ownership.

Binter is viewed as a particularly logical bidder because of its existing codeshare partnership with Azores Airlines and its experience operating regional island networks in the Canary Islands. The carrier already cooperates with SATA on services between the Azores and the Canary Islands and could potentially strengthen mid-Atlantic regional connectivity. Some reports suggest Binter may consider acquiring a minority stake of around 20%.

Icelandair’s interest is linked to the strategic potential of Ponta Delgada Airport as a complementary North Atlantic hub alongside Keflavík, supporting transatlantic flows between Europe and North America.

Azores Airlines’ fleet is also seen as a major attraction for investors. The carrier operates long-range Airbus A321LR aircraft capable of serving transatlantic routes to cities such as Boston, New York and Toronto efficiently.

The stakes of privatisation extend beyond ownership. The Azorean government views the airline as strategically important for tourism, diaspora traffic, territorial cohesion and inter-island connectivity. Maintaining public service obligations and protecting more than 800 direct jobs are expected to remain central priorities during negotiations.

The process is expected to unfold in several phases, including expressions of interest, non-binding offers and final binding bids, as the region races to meet the EU restructuring deadline.