470 COMPETITION LAW IN TOURISM the development of tourism in the region, carrying c.a. 40% of the passengers arriving to Azores. The tourism sector has been increasing and now represents over 10% of the regional GDP, with related effects on direct and indirect jobs in Azores”. The sanitary measures adopted to combat the COVID-19 outbreak included government travel restrictions and quarantine orders and inevitably “had a major impact on SATA and aggravated its financial situation. SATA’s revenues were drastically reduced in March, April and May 2020, resulting in a negative cash flow position”158. This is most relevant to understand the impact in the Azorean touristic activity also. As referred above in F.2.1.4., of the overall aid scheme notified by the Portuguese authorities in favour of the SATA group, the European Commission has authorised the public guarantee to a bank loan which aims to “cover the projected liquidity needs until end January 2021 “that are critical to maintain the essential functions of connectivity provided by the beneficiary”. More precisely, it concerns the PSO (SGEI) related to air transport to the Açores Region and to the management of airports in the same Region and amounting to 133 million euros159. The loan guarantee will be terminated within six months of the date of the rescue authorised by the Commission, “unless a restructuring plan is submitted for approval before”, in which case the same will be “automatically extended until the Commission decides on the restructuring plan”. From the public version of the decision it is not clear cut what is the final strategy of the Portuguese authorities concerning the same plan and any alternatives to its presentation160. 158 The sanitary measures “caused numerous flight cancellations and route suspensions” and the timeline was the following: On 19 March 2020, SATA Azores Airlines had to focus its operational activity at Ponta Delgada airport, and SATA Air Açores had to suspend PSO connections from all Azores islands to Terceira island, and vice-versa; On 25 March 2020, SATA Air Açores’ regional inter-island PSO flights and all flights providing connections outside the Region were suspended except for PSO flights concerning cargo transport or cases of force majeure, provided that they were authorised by the Regional Health Authority; On 4 May 2020, air connections to and from Azores Islands were suspended until 31 May 31 2020; On 29 May 2020, SATA Air Açores’ air connections between all the islands of the Region under the PSOs were gradually restarted; from 1 July 2020, SATA Air Açores, inter-island connections could be fully resumed”. 159 This amount excludes the costs of commercial routes of SATA and liquidity needs of Azores Vacations America and Azores Vacations Canada. 160 In paragraph (27) it is stated “Whilst Portugal prefers presenting to the Commission a restructuring plan […]”.
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