EU regulators, Italy clear key hurdle for Alitalia’s successor

imageStock Markets25 minutes ago (Jul 01, 2021 04:26AM ET)

(C) Reuters. FILE PHOTO: Alitalia planes are seen on the tarmac at Fiumicino International Airport as talks between Italy and the European Commission over the revamp of Alitalia are due to enter a key phase, in Rome, Italy, April 15, 2021. REUTERS/Remo Casilli/File Ph

By Foo Yun Chee

BRUSSELS (Reuters) -The European Commission said on Thursday it has reached a deal with Italy on the parameters for separating loss-making carrier Alitalia from its successor, a step key to securing EU approval for the new airline and to write off Alitalia’s subsidies.

Brussels and Rome have been in lengthy talks over Alitalia’s fate and its successor Italia Trasporto Aereo (ITA), demanding that ITA should be independent from the former so that it will not be liable for Alitalia’s billions of euros in state aid received in recent years.

Commission Competition Commissioner Margrethe Vestager met Italy’s economy and industry ministers late on Wednesday.

“Following intense and constructive discussions at all levels, the Commission and the Italian authorities have reached a common understanding on the key parameters to ensure economic discontinuity between ITA and Alitalia,” a Commission spokesperson said.

The two sides had previously disagreed over ITA ceding half of Alitalia’s slots at Milan Linate airport, the old brand and the loyalty programme.

The Commission declined to comment on Rome’s plan to extend to December the maturity of a 400-million-euro ($473.9 million)bridge loan granted Alitalia, according to a draft decree seen by Reuters.

“It is for member states to assess whether a measure involves state aid that needs to be notified to the Commission under EU rules,” the spokesperson said.

($1 = 0.8441 euros)

EU regulators, Italy clear key hurdle for Alitalia’s successor

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.