British Airways’ parent company IAG has urged the European Union to block Alitalia’s €500 million rescue package because it has been put together by the Italian government.
Alitalia had been on the brink of bankruptcy until the package of extra funding was agreed on Friday.
But IAG said that the European Commission should take action to stop the deal being approved.
"We have always been opposed to state aid,” said an IAG spokeswoman. “It's protectionist, undermines competition and favours failing airlines that have not got to grips with economic reality.
“We would urge and expect the EU Commission to take interim measures to suspend this manifestly illegal aid.”
The EU said it was waiting to receive notification and details of the rescue package for Alitalia.
“Only after receiving the notification will we be able to assess its compatibility with EU state aid rules,” said an EU spokeswoman.
IAG’s chief executive Willie Walsh has previously spoken out against state aid to struggling airlines and said they should be allowed to go to the wall instead of being propped up by governments.