The European Commission believes that the aid of 199.45 million euros that Italy intends to grant to Alitalia is compatible with the rules on state aid. The measure aims to compensate the airline for the damage suffered as a result of the coronavirus pandemic.
The Commission assesses, a note indicates, that ‘the Italian measure will compensate for the damages suffered by Alitalia that are directly attributable to the coronavirus pandemic, further concluding that the measure is proportionate, as the compensation does not exceed what is necessary to remedy the damage “.
The head of competition, Margrethe Vestager, said that the Italian measure to deal with the damage of the pandemic “will allow Alitalia to compensate for the travel restrictions necessary to limit the spread of the coronavirus”. Underlining that the commission continues “to collaborate with Member States in search of viable solutions to support businesses in these difficult times, in line with EU standards”.
At the same time, “our investigations into the support measures granted to Alitalia in the past are always ongoing and we remain in contact with the Italian authorities to be updated on their plans and their compliance with European standards”. Indeed, Brussels would like to point out that the situation of the other Community investigations into the airline does not change.
And he recalls that on the basis of the complaints received, on 23 April 2018 he had initiated a formal investigation procedure relating to loans for 900 million that Italy granted to Alitalia in 2017. On 28 February 2020, the commission then initiated another procedure he formal investigation into a further 400 million loan granted by Italy in October 2019. Both investigations are ongoing.
After this match, the state aid chapter will then be examined: in 2017 the European Commission opened a procedure linked to the bridge loan granted by the government to keep Alitalia alive, avoiding sinking the blow – which would have decreed the bankruptcy of Az – in waiting for the birth of a new company. To date, public aid has risen to 1.3 billion. A figure that, barring surprises, will be considered almost entirely an illegal subsidy by the EU. The game will focus on how to sterilize any sentence, or how to dump it on the old company (which will not have the means to repay the state) avoiding loading the debt on the new Alitalia, which at that point would immediately risk collapse. To succeed in the enterprise, the government will have to demonstrate a discontinuity between the old and the new Az. A change of logo, a modification of the routes and of the fleet and above all an intervention on the personnel will be necessary, with the separation of the flight branch from the services to land that should be sold with the risk of employment repercussions.
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