Italy would have to abandon the 75-year-old Alitalia brand if it wants the European Commission to approve plans to relaunch the airline, according to a letter published by L’Espresso magazine.
See also: New Alitalia will operate with half of the aircraft and workers.
Loss-making Alitalia has endured 11 years of turbulent private management and three failed restructuring attempts, and now the government intends to nationalize and relaunch the ailing flag carrier after the coronavirus crisis scuttled sale plans, Reuters reported.
“The Alitalia brand should not be retained by the new company, as it is an emblematic indicator of continuity,” the European Union states in the letter published by L’Espresso.
See also: IAG finally seals purchase of Air Europa for 500 million.
The letter also calls on Rome to launch an “open, transparent, non-discriminatory and unconditional tender” to divest itself of Alitalia’s assets, rejecting the idea that the old company could sell its belongings to the new company in a private negotiation.
“The new company should not retain the combined aviation, ground handling and maintenance businesses,” the EU competition watchdog is quoted as saying in the letter.
The EU may block the €3 billion ($3.63 billion) injection earmarked by the Italian government for the new company, thus thwarting Rome’s ambitions for the airline.
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