L 160/80
EN
Official Journal of the European Union
26.6.2023
(228) Finally, the fresh funding by a private financial institution ( [...] ) of EUR [...] million (recital 50(4)), not guaranteed by the Region, can be considered real and actual given that it has been already negotiated with the financial institution and can be executed in 2022.
Furthermore, since SATA has the opportunity to choose among [...] alternative suitable lenders, the possibility of funding by private investors also indicates its ability to restore its full access to capital markets and represents a signal of market confidence in its return to viability.
(229) Contrary to the views of the Portuguese authorities, the proceeds from the sale of the majority stake (51 %) of Azores Airlines and the entire ground-handling business (recital 51), even if already scheduled to take place by the end of the restructuring plan, cannot be considered as real and actual.
In particular, the corresponding amounts (around EUR [...] million) consist of expected financial resources relating to the sale of assets that have not yet taken place and, although the Portuguese authorities have submitted their firm commitment to the divestiture, the process of privatisation has not yet started and there are no identified or even potential buyers for the acquisition.
(230) The Commission thus estimates the overall own contribution that can be considered real and actual to be at most EUR [...] million, representing approximately 30 % of SATA’s eligible restructuring costs, which, differently from what Portugal calculated (recital 47), are equal to EUR [...] million, as they include and are financed by the restructuring aid in the amount of EUR 453,25 million in addition to the said maximum amount of own contribution.
The remaining costs, such as working capital, will need to be covered with SATA’s normal operating revenues or improved payment terms not yet defined.
The estimated proportion of 30 % of own contribution and 70 % of restructuring aid is manifestly conservative as, in the absence of any commitment from one or several identified buyers, it does not factor in, as sufficiently actual contribution, any proceeds from the future divestments to which Portugal commits before the restructuring plan.
This approach disregards the future value of the shares of Azores Airlines and the ground handling business.
The positive operating results expected at the end of the restructuring plan for these two businesses make it likely for the ARA to recover and reduce the amount of aid by a few dozens of millions of euro.
In any event, the overall own contribution to the restructuring costs by the beneficiary, even if below the 50 % minimum normally required, may still be accepted, in line with points 64 and 98 of the R&R Guidelines.
(231) In particular, in the current circumstances following the outbreak of the COVID-19 pandemic, the Commission considers that it may be justified, depending on the individual case, that own contribution remains below the threshold of 50 % of the restructuring costs, as long as it remains significant, as required by point 64 of the R&R Guidelines.
By way of indication of a level which the Commission would consider appropriate, in its case practice, the Commission has considered that an own contribution amounting to 24 %-35 % of the restructuring costs may be significant and, thus, that restructuring aid amounting to around 65 %-76 % of the restructuring costs may be proportionate (157).
(232) In the case of SATA, the Commission considers that Portugal has demonstrated the presence of exceptional circumstances relating, in particular, to the fact that the COVID-19 pandemic and the measures taken to contain it have created exceptional circumstances for this small regional airline, in the context of a serious disturbance of the economy within the meaning of Article 107(3), point (b), TFEU, with immediate impact on the aviation and tourism sectors and its ability to raise market funding (recitals 34 to 37), although the Commission notes the fact that, despite those unfavourable circumstances, SATA still managed to raise a certain amount of fresh market funding as mentioned in recital 228.
In particular, considering the lower operation levels linked to the steep decrease in travel demand to the Azores from March 2020 onwards, the COVID-19 pandemic has affected particularly SATA, beyond the direct losses due the travel bans and restrictions adopted by the public authorities in (157) In the Decision of 26 January 2022, SA.59974 (2021/C) – Romania - Restructuring of CE Oltenia (not yet published), recitals 214 to 219, the Commission considered acceptable a level of own contribution of 32 % of the restructuring costs.
Similarly, in the Decision of 21 December 2021, SA.60165 - Portugal - Restructuring aid to TAP SGPS (not yet published), recital 263, the Commission accepted a own contribution equal to 35 % of the restructuring costs.
Under the 1999 R&R Guidelines, which required that the own contribution ought to be significant, without specifying a minimum threshold of application, which was set to 50 % in the 2004 R&R Guidelines, in the Decision of 24 April 2007 relating to the aid measure implemented by Belgium in support of Inter Ferry Boats (C 46/05 (ex NN 9/04 and ex N 55/05)) (OJ L 225, 27.8.2009, p. 1), recitals 348-350, the Commission had also accepted an own contribution of 24 %.