The regional government of the Azores, a Portuguese archipelago, has recently decided to suspend the privatisation processes of Azores Airlines and hotels on the islands of Flores and Graciosa. This decision comes as a result of the current political situation in the region, which has led to the rejection of the budget for 2024 and calls for early regional elections. In this blog post, we will explore the reasons behind this suspension and its potential implications.
Political Situation and Budget Rejection
José Manuel Bolieiro, the president of the Azorean government, has called for early regional elections after the rejection of the archipelago's budget for 2024. He believes that presenting a new budget would be futile and has proposed holding the elections on February 4, 2024. To discuss this matter further, a meeting of the Council of State has been scheduled for December 11. The rejection of the budget and subsequent political uncertainty have prompted the suspension of privatisation processes.
Reasons for Suspension
In an official statement published on December 5, the Azoren government highlighted the current political situation in the region as the primary reason for suspending the sale tenders for privatisation purposes. With the opposition parties blocking the regional budget and the likelihood of early regional legislative elections, it has become necessary to halt the privatisation processes until the situation is clarified. This decision aims to ensure transparency and stability in the region's economic activities.
Azores Airlines and Hotel Privatisation
The suspension affects the public processes for the sale of Azores Airlines and hotels on the islands of Flores and Graciosa. The Azores Regional Council had initiated a public tender in March, seeking to sell between 51% and 85% of Azores Airlines. The deadline for bids was initially set for June 20 but was extended to July 31. However, due to similar proposals from two parties and subsequent revisions, the tender was suspended in August. In October, one contender was asked to adjust its proposal, while the other bid faced criticism from the Portuguese pilots union.
Implications and Future Outlook
The suspension of privatisation processes in the Azores raises questions about the future direction of Azores Airlines and hotel ownership on Flores and Graciosa. The political uncertainty surrounding early regional elections adds further complexity to these matters. It remains to be seen how the situation will unfold and whether there will be any impact on the tourism industry in the region. Clarity and resolution in the political landscape will be crucial for moving forward with any privatisation plans.
Summary
The regional government of the Azores has taken the decision to suspend privatisation processes for Azores Airlines and hotels on Flores and Graciosa due to the current political situation in the archipelago. With the rejection of the budget for 2024 and calls for early regional elections, it is essential to ensure stability and transparency in economic activities. The future outcome of these suspensions and their impact on tourism and local businesses will depend on how the political situation unfolds.
(This article is sourced from ch-aviation.com and curated by Thetransporteronline24)
