Alitalia has to pay back millions in state aid

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Alitalia has to pay back millions in state aid

Airline Alitalia must repay 400 million euros to the Italian state. According to the European Commission, the payment was a form of illegal state aid. Italy must recover the money, plus interest, from the company.

In May 2017, Alitalia was placed in special bankruptcy proceedings under Italian bankruptcy law while continuing to operate as an airline. In order to keep Alitalia operational, Italy provided loans to the company in 2017 and 2019 for 900 and 400 million euros respectively. These loans have never been repaid, says the EU executive.

Airline Alitalia must repay 400 million euros to the Italian state. (Unsplash)

In September 2021, the committee already concluded after an investigation that the 900 million euros in aid was illegal. Now she says that no private investor would have provided the additional EUR 400 million loan to the company in 2019 and that the loan gave Alitalia an unfair economic advantage over its competitors on domestic, European and international routes.

ITA Airways

Previously, the commission has already determined that ITA Airways, which acquired part of Alitalia’s assets in 2021, is not Alitalia’s economic successor and is therefore not obliged to repay the illegal state aid received by Alitalia.


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