The European Commission has said that a support package
worth nearly €200 million for Alitalia does not breach EU state aid rules because
the package is aimed at compensating the Italian airline for damages caused by
the coronavirus pandemic.
According to the Italian government, the proposed €199.45
million pay-out will compensate Alitalia for financial damage suffered from 1
March to 15 June resulting from the government-mandated travel restrictions
imposed to halt the spread of Covid-19. The Commission has decided the
coronavirus outbreak qualifies as an exceptional circumstance under its Temporary
Framework for state aid, which allows member states to support specific companies
or sectors impacted by the virus.
The Italian government is attempting to restructure the
airline, which filed for bankruptcy in 2017 and has since received around €1.3
billion in state-backed loans and support – currently being investigated by the
European Commission following complaints that the payments breach normal state
aid rules. Italy has proposed investing another €3 billion into Alitalia, which
will also be subject to EU approval. Several attempts to sell the carrier have
failed over the last three years.