EU regulators okay 73-mln-euro Italian aid for virus-hit Alitalia

BRUSSELS (Reuters) – EU competition regulators on Tuesday approved 73 million euros ($89.5 million) in Italian state aid for Alitalia, which posted significant operating losses on 19 routes over a four-month period to October due to the coronavirus pandemic.

The European Commission said the aid was proportionate.

“The route-by-route quantitative analysis submitted by Italy appropriately identifies the damage attributable to the containment measures, and therefore the compensation does not exceed what is necessary to make good the damage on those routes,” the EU competition enforcer said in a statement.

The Commission had in September given the green light to 199.45 million euros in state support to the virus-hit Italian carrier.

Alitalia, which Rome wants to renationalise, is the target of two ongoing investigations by the Commission into 1.3 billion euros of loans granted to the carrier in 2017 and 2019.

“Our investigations into past support measures to Alitalia are ongoing and we are in contact with Italy on their plans and compliance with EU rules,” European Competition Commissioner Margrethe Vestager said in the statement.

($1 = 0.8159 euros)