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Binter Airways: Contract Acceleration

The Regional Secretary for Economy, Tourism, and Culture met in Funchal, this Tuesday, with the Secretary of State for Infrastructure, Hugo Espírito Santo, and Eduardo Jesus left with the assurance that the contracting of Binter Canarias for the connection between Porto Santo and Madeira is in the process of being completed.

According to a note from the Regional Secretary’s office, the Porto Santo-Funchal-Porto Santo connection was one of several topics that were on the table at the meeting between the two governors.

On the part of Hugo Espirito Santos, it was stated that the contracting of Binter Canarias is in the process of being terminated. A reality that comes after a court decision dismissed Sevenair’s action against the State Portuguese for the award of the aforementioned route to Binter Canarias.

The judgment of the Supreme Administrative Court decided on the legality of the decision of the jury of the tender procedure, in proposing the award of the concession of the airline between Funchal and Porto Santo, to the Spanish company.

The new public service obligation concession will last for three years (2024-2027), with Binter Canarias maintaining the current offer, as recalled by the Regional Secretariat for Economy, Tourism, and Culture.

For the concession, not only did the Secretary of State express the intention to launch the tender procedure promptly, avoiding extensions and uncertainty in the population, but also expressed the openness, on the part of the Government of the Republic, to listen to the Region, better adapting the specifications to the island and outermost needs of Porto Santo and Madeira.

Quoted in the same note, the regional secretary for Economy, Tourism, and Culture considers the decision to quickly implement the contract for the Porto Santo line with Binter Canarias as essential to create stability within the market that allows both residents and visitors to travel to and from Porto Santo without the setbacks of extensions and consequent uncertainties in the continuity of the air operation.

In addition, the Madeiran official underlines the dialogue that has existed with the Government, namely with the team of Minister Miguel Pinto Luz, narrowing the lines of understanding in the implementation of pending issues.

The last contract between the State and Binter was dated February 2019 and was expected to be in force for three years, specifically until April 2022.

In the meantime, a new international public tender was opened with two competitors, namely Binter, who were awarded the concession, while, Portuguese company Sevenair, was excluded and asked to challenge the process.

This challenge led to the suspension of the international call for tenders, with the contract between the State and Binter being successively extended.

Samantha Gannon

info at madeira-weekly.com

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