The European Commission approves the Italian state aid of 199 million to Alitalia.

The European Commission (EC) approved this Friday an aid of 199.45 million euros that the Italian government has granted to the airline Alitalia to compensate for losses suffered during the coronavirus pandemic.

“This measure will allow Italy to compensate Alitalia for the damage suffered directly from the travel restrictions necessary to limit the spread of the coronavirus,” said the EC’s Executive Vice President for Competition, Margrethe Vestager, in a statement.

At the same time, the Danish politician underlined that the investigations of Brussels on the previous state aids to the airline are still in progress.

With no profits since 2002, Alitalia was taken over by the Italian State in May 2017 and its bankruptcy administration has tried to sell it without success.

In this time, it has received two state loans of 900 million and 400 million to guarantee its operations. It is these two aids that the Commission is still investigating.

“We are in contact with Italy about their plans and respect for EU rules,” said Vestager. The intention of the Italian government is to re-nationalise the airline after the pandemic.

In any case, the support approved today is limited to the losses caused by the coronavirus and Brussels recalled that since the beginning of the outbreak of Alitalia disease “has suffered a significant reduction in its services, resulting in high operational losses.

Thus, the direct grant of 199.45 million euros aims to cover the damage suffered between March 1 and June 15 this year “as a result of containment measures and travel restrictions introduced by Italy and other countries of destination.

Community rules allow States to support specific companies and sectors “for damage directly caused by exceptional events”, such as the COVID-19 pandemic.

In this connection the Commission noted that the EUR 199.45 million in aid is “proportionate” and does not exceed “what is necessary” to cover losses caused by the coronavirus.

By EFE