468 COMPETITION LAW IN TOURISM persons, of which 1150 locally in the Region and 250 in Lisbon. SATA Air Açores controls various companies: SATA Internacional – Azores Airlines, S.A. (“Azores Airlines”), SATA – Gestão de Aeródromos, S.A. (“SATA Gestão de Aeródromos” or “SGA”) and Azores Vacations America and Azores Vacations Canada147. SATA Air Açores provides air transport passenger and cargo services with routes (i) under public service obligations (“PSO”)148, or (ii) on commercial basis. According to the decision, Air Açores serves the nine islands of the Region through inter-island air transport of the Azores Archipelago, for a total of 14 routes149, under PSO entrusted exclusively to SATA Air Açores150. Moreover, “Azores Airlines was incorporated in December 1990 and has an administrative hub in Ponta Delgada and one operational base in Lisbon. Azores Airlines operates without compensation (i) 3 PSO routes connecting the five gateways of the Azores (São Miguel, Terceira, Santa Maria, Horta and Pico islands) to mainland Portugal, (ii) a PSO route linking Ponta Delgada to Funchal (Madeira island) and (iii) international flights for regular routes in the North Atlantic to Boston, Oakland, Toronto and Montreal. Azores Airlines also operates niche tourist markets and charter services. Even if the abovementioned PSO routes are open to all operators willing to comply with the PSOs imposed on the routes, Azores Airlines is the only airline operating these PSO routes”151. As for SATA Gestão de Aeródromos, the same was incorporated in 2005 and is dedicated to the management of the aerodromes of Pico, Graciosa, Corvo and São Jorge, as well as the Flores island terminal. According to the Commission, “Portugal alleges that the management of these airports is not economically attractive for private parties, contrary to the airports of São Miguel and Terceira, which are operated by the Vinci Group” and thus “are services of general economic interest (“SGEI”)”152. Air traffic in each of these airports has been 147 These two tour operators are situated in North America since 1985 and their business focus is on connecting North America, mainland Portugal and the Region throughout the year. 148 See list of 176 PSO routes reported to the Commission (DGTransport and Mobility) as of September 2019, including SATA: https://ec.europa.eu/transport/sites/transport/files/pso_inventory_table.pdf. 149 According to the decision, “in 2019, SATA Air Açores operated more than 15 000 flights, with six Dash Bombardier planes which carried around 766 000 passengers”. 150 According to the decision, “by means of a 5-year public service contract expiring on 30 September 2020. SATA Air Açores was the only airline that submitted a bid for these routes in 2015”. 151 According to the decision, “in 2019, Azores Airlines operated around 7.000 flights, through six medium course Airbus 320 planes serving around 946.000 passengers”. 152 The concession relating to airport public services in support to civil aviation in Graciosa, Pico, São Jorge and Corvo islands was awarded to SGA by contract of 1 July 2005, executed under the terms of Regional Government Resolution no. 102/2005, of 16 June, for a period of 10 years, renewable for periods of 5 years, up to a maximum duration of 20 years.
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