Azores Situation Report Wednesday 8th October 2025
Economic and Business Concerns in the Azores
The Azores Chamber of Commerce and Industry (CCIA) has called for the development of a contingency plan in case Azores Airlines is forced to close. This comes amid ongoing negotiations for the airline’s privatization with the Newtour/MS Aviation consortium. The Regional Government has indicated that, if no agreement is reached, the company may be closed.
Business leaders stress the importance of maintaining current air routes and frequencies and recommend that SATA Air Açores increase its inter-island flight capacity, especially during peak periods, to ensure the smooth movement of both tourists and residents.
The CCIA Forum, which brought together businesspeople and associations from across the Azores, has also highlighted several pressing economic issues. They urge that the region’s 2026 Plan and Budget prioritize the private sector and introduce measures to consistently reduce current expenses. The Forum warns of a worsening imbalance between revenues and expenditures, which is contributing to the region’s growing public debt. To address this, they propose a medium-term plan to reverse the debt trajectory and emphasize that continuous growth of regional public debt is unsustainable.
Additionally, the Forum draws attention to the low implementation rates of key European funding programs, such as the Azores 2030 Operational Program (PO) and the Recovery and Resilience Plan (PRR). With the PRR’s implementation rate at just 42.7%, more than twice the amount already completed since 2021 must be achieved in less than a year. The Forum insists that accelerating the implementation of these funds should be a top priority for Azorean society in 2026.
Other recommendations include developing a robust strategy to address seasonality in tourism, reviewing the maritime transport model, and reforming both the Regional Finance Law and regional public administration. The Forum concludes that the Azores need a more agile, streamlined, and less bureaucratic administration, and should not remain isolated from national reforms.
Public Health Incident: Flea Infestation in Rabo de Peixe
A flea infestation has affected several schools in Rabo de Peixe, including the Ribeira Grande Vocational School, Luísa Constantina School, and Rui Galvão de Carvalho School. In response, the municipality has hired a company to disinfect the schools and surrounding streets as a precautionary measure. According to Mayor Alexandre Gaudêncio, there have been no reports of the infestation spreading to residential areas or public roads.
The outbreak was first reported near the Centre for Arts and Crafts (CAO), a municipal building used by the vocational school. The school conducted a general disinfection of the building and its surroundings, resulting in a temporary closure to ensure thorough cleaning. Later, the Rui Galvão de Carvalho School reported that the infestation had reached the area around Luísa Constantina School, affecting some teachers and students.
The municipality’s public health team, led by its full-time veterinarian, responded promptly, initiating intervention within 24 hours. Both Luísa Constantina and Rui Galvão de Carvalho schools will be closed for disinfection, with plans to resume activities the following day. The mayor noted that the spread of the infestation to another public school was unexpected, and the municipality hopes the hired company will identify the source of the problem.
While there is speculation about the possible link to illegal animal exploitation near the vocational school, as occurred in previous years, the mayor has not confirmed this as the cause. He explained that, in the past, municipal inspections resolved similar issues after giving deadlines for corrective action.