Brussels, 07/06/2005 (Agence Europe) - On 7 June, the Commission gave its approval for the recapitalisation of Alitalia and its services subsidiary, subject to compliance with strict conditions, aimed at ensuring that the Italian state behaves like a private investor (EUROPE 8940). “On the basis of a thorough and detailed analysis, the Commission has concluded that these recapitalisations do not involve any State aid. This would have been prohibited by the 'one time, last time' principle which we scrupulously uphold”, said Jacques Barrot, Transport Commissioner. According to a press release, the recapitalisation of EUR 1.2 billion of the airline, AZ Fly, must take place at the same price and under the same conditions as private investors. The Commission obtained a letter of intent from the international bank, Deutsche Bank, guaranteeing effective and majority involvement of the private sector in this operation, and the Italian State will not be able to grant banks a discount on the issuance price. AZ Services, which is responsible for Alitalia's maintenance, groundhandling and shared services activities, will be recapitalised by Fintecna to the extent of EUR 216 million. Fintecna should keep strictly to the investment plan as notified to the Commission, which has verified, by means of an independent investigation, that this investment offers a return consistent with what a private investor would expect. Furthermore, the Commission notes that the conditions accompanying the authorisation, on 20 July 2004, for rescue aid of EUR 400 million, have so far met with compliance (EUROPE 8752). The Italian authorities also pledge to ensure that Alitalia reimburses this loan in advance within the eight working days after conclusion of AZ Fly recapitalisation, and in any event before 31 December 2005.