La European Commission approves the state aid that the Italian government has launched to compensate for the damage suffered by Alitalia due to the Covid 19 pandemic. In all, the bill amounts to 73,2 million euros to cover the period between 16 June and 31 October. For the European Antitrust, the measure is in line with EU rules on state aid.
Margrethe Vestager, Vice-President of the European Commission in charge of Competition, underlined that “the aviation industry continues to be one of the sectors most affected by the impact of the coronavirus pandemic. This measure allows Italy to provide further compensation for direct damages suffered by Alitalia between June and October 2020 due to travel restrictions necessary to limit the spread of the virus. We continue to work closely with Member States to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules."
However, at the same time, "our investigations into past support measures for Alitalia are underway - Vestager specified again - We are in contact with Italy regarding its plans and compliance with EU rules".
The reference is at two investigations by the Commission into loans granted by the State to Alitalia in the past. Based on the complaints received, on 23 April 2018 the Commission had opened a formal investigation procedure into the €900 million loans granted to the company in 2017.
Subsequently, on 28 February 2020, the EU executive launched another separate formal investigation procedure into the additional €400 million loan granted by the state in October 2019.
