Italian flag-carrier Alitalia has got three months to rectify its financial situation before it is forced to declare bankruptcy. Under EU law no state is able to aid an airline even though complaints that the Italian government”s hand-out last year was considered state aid was overruled.
Although the airline is 49% owned by the state it has been making a loss for years, has suffered employee strike action and has faced tough competition from the rise of the low-cost model.
Although the airline has previously admitted it is being forced to restructure, it has a limited time in which to action this and the EU is not prepared to hand over any more financial aid.
When contacted by ABTN, Alitalia refused to comment.
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