ALITALIA is bracing itself for intense probing by the European Commission, which is investigating details of the airline”s E1.2bn restructuring plan. Subject to the investigation are the recapitalization of Alitalia's air transport business, AZ Fly, and the E220m takeover of its ground services, AZ Services, by public holding company Fintecna. Additionally, the EC will examine the Italian government”s pledge to reduce its stake in Alitalia to a minority by July 2005. That pledge was a critical component of the EC”s decision to grant Alitalia a E400m, state-guaranteed bail-out loan it is slated to receive later this year. Meanwhile, low-fare carrier easyJet encouraged the EC investigation in order to guarantee that Alitalia does not receive any illegal state aid. The airline”s competitors have also used the investigation to criticize the planned alliance between Alitalia and Air France.
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