On Monday 27 March, the European Commission concluded that a €400 million state loan granted by Italy in 2019 to Alitalia Società Aerea Italiana S.p.A. and its wholly-owned subsidiary, Alitalia CityLiner S.p.A., was illegal under EU State aid rules.
Italy must recover the illegal State aid, plus interest, from Alitalia.
In May 2017, Alitalia was placed into special bankruptcy proceedings. Italy granted the company loans of €900 million (split into two loans) and €400 million in 2017 and 2019 respectively. These loans have never been repaid.
In 2018, the Commission opened a formal investigation into these loans.
In February 2020, the Commission opened a formal investigation to determine whether the additional €400 million State loan granted by Italy on 26 October 2019 was in line with EU State aid rules. In September 2021, the Commission concluded that the €900 million State loans to Alitalia were illegal (see EUROPE 12788/4).
The Commission concluded that, when granting the €400 million State aid loan in 2019, Italy did not act like as a private operator would have done, as it did not assess in advance the probability of repayment of the loans, plus interest, but aimed at ensuring the uninterrupted service of Alitalia’s national and international flights. (Original version in French by Lionel Changeur)