| Author (Corporate) | European Commission: DG Competition |
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| Publication Date | 23/04/2018 |
| Content Type | News |
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Further information: The European Commission announced on 23 April 2018 the opening of an in-depth investigation to assess whether Italy's bridge loan to Alitalia totalling €900 million constitutes State aid and whether it complies with EU rules for aid to companies in difficulty. Background information: Alitalia is an Italian airline owned by the consortium Compagnia Aerea Italiana - CAI (51% shares) and Etihad Airways (49%). Alitalia has been in financial difficulty for a number of years. On 24 April 2017 Alitalia's staff rejected a cost-cutting plan, which meant that the shareholders decided not to provide additional financing to Alitalia. As a result, Alitalia was placed under extraordinary administration under Italian bankruptcy law on 2 May 2017. + Alitalia faces bankrupcy, 2017 In order to ensure financing of Alitalia during the period of extraordinary administration, the Italian State granted a €600 million bridge loan to Alitalia in May 2017. In October 2017, this loan was increased by an additional €300 million. The extraordinary administrators also started a tender procedure aimed at finding a buyer for Alitalia's assets. In January 2018, Italy notified the total €900 million State loan granted to Alitalia as rescue aid within the meaning of EU State aid rules, namely the Commission's Rescue and Restructuring Aid Guidelines. This followed a number of complaints received by the Commission in 2017, alleging that the loan constitutes State aid that it is not compatible with the applicable EU rules. |
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| Source Link | Link to Main Source http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_48171 |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe, Italy |
