It was wrong to give an emergency loan of 900 million euros to the airline Alitalia in 2017 and the Italian state now needs to demand the money back.

The offer comes from the European Commission on Friday, at the same time as the green light is given for state aid of 1.35 billion euros to the successor Ita.

”"Both decisions are important in helping to restore a level playing field in the European aviation sector while ensuring consumer rights and flight connections in Italy," said EU Commissioner for Competition Margrethe Vestager in a statement.

After a long-term crisis and difficulties in finding new owners, Italy decided last year to transform the state-owned Alitalia into the also state-owned Ita (Italia Trasporto Aereo), which will start operating from mid-October this year. The EU Commission has now also ruled that Ita should be seen as financially decoupled from Alitalia and therefore does not need to help repay Alitalia's emergency loans.

Source: TT