Brussels, 19/01/2005 (Agence Europe) - On Wednesday, the European Commission decided to start a detailed analysis of the recapitalisation of Italian airline Alitalia to check it complies with EU state aid rules. In a press release, Commission Vice-President Jacques Barrot said: “The Italian authorities have presented a serious industrial plan. Certain parts now have to be checked to confirm that the plan does not contain state aid. I want our analysis carried out swiftly.” (Such investigations can last up to 18 months.)
The restructuring plan concerns the proposed €1.2 billion recapitalisation of Alitalia's air transport business (AZ Fly), in particular the guarantee regarding the share underwritten by the market. The €220 million takeover of its ground services (AZ Services) by the public holding company Fintecna will also be examined. The aim is to check that these two operations comply with the principle of a prudent investor operating in a market economy and that the commercial ties between the two companies are in order, explains the Commission. On the takeover of AZ Services by the public holding company Fintecna, the Commission would like to check, with the aid of an independent expert, the profitability and characteristics of the operation, which involves the use of preference shares. It will have to be shown that Fintecna is acting in the same way as a “prudent investor” would. On the €1.2 billion recapitalisation of AZ Fly, the state's contribution should go together with that of the private sector. Italy will have to give guarantees similar to those it gave during the previous recapitalisation in 2002, especially as regards the involvement of the private sector in the operation. 'Some aspects of the recapitalisation which may affect the state's involvement, such as reducing the capital prior to recapitalisation, will have to be spelt out in more detail,' says the Commission. The Commission is particularly concerned that, when rescue aid of €400 million was approved in July 2004, the Italian authorities gave an undertaking that the State's holding in Alitalia's capital would be a minority one within 12 months at the most. The Commission 'will pay particular attention to compliance with this commitment'.