Brussel start onderzoek naar staatshulp Alitalia (en)
EUOBSERVER / BRUSSELS - The European Commission has launched an investigation into Italy's loan to the country's national airline Alitalia, which could result in repayment of financial aid despite pre-election pledges by premier Silvio Berlusconi to save the airline.
"At this stage, the commission believes that the [€300 million] loan - which the Italian company has the option of incorporating into its equity capital - could constitute aid that is incompatible with the common market," the EU executive said in a statement.
All economic players may now express their opinion on the issue, with several competing airlines such as British Airways and Air France-KLM having previously criticised Rome's bail-out of Alitalia.
The Italian centre-left government, under ex-leader Romano Prodi, granted the company a loan of €300 million in late April to prevent it going into bankruptcy.
Following the swearing-in of the new cabinet of centre-right prime minister Silvio Berlusconi in early May, a second government decree allowed Alitalia to incorporate that sum into its equity capital to maintain its value and allow its possible privatisation.
But if the EU's key competition watchdog decides the aid was wrongfully given after the inquiry of up to 18 months, the firm will have to return the investment.
Mr Berlusconi is currently seeking a buyer for the Italian airline, in which the state holds a 49.9 percent share. Before the parliamentary elections in mid-April, he had promised to save the company from bankruptcy.
The Italian government has one month to reply to the commission. "We are preparing the letter and replies on the problem raised by the commission because we are able to resolve it. We will explain the reasons for the decree granting the loan," said Altero Matteoli, the country's infrastructure minister.
With headquarters in Rome, Alitalia operates services to 28 domestic and 74 international destinations and is the world's 19th largest passenger airline by fleet size.