The European Commission approved the €73 million support package prepared by the Italian Government to support the national airline, Alitalia, which is struggling due to the covid-19 crisis.
The support package aims to compensate the airline for the damage it suffered on 19 routes between June 16 and October 31, 2020 due to the coronavirus outbreak.
In a statement Executive Vice-President Margrethe Vestager, in charge of competition policy, said:
“The aviation industry continues to be one of the sectors hit particularly hard by the impact of the coronavirus outbreak. This measure enables Italy to provide further compensation for direct damages suffered by Alitalia between June and October 2020 due to the travel restrictions necessary to limit the spread of the coronavirus. We continue working closely with Member States to ensure that national support measures can be put in place in a coordinated and effective way, in line with EU rules. At the same time, 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.”
In April 2018 the Commission opened a formal investigation procedure on €900 million loans granted to Alitalia by Italy in 2017. On 28 February 2020, the Commission opened a separate formal investigation procedure on an additional €400 million loan granted by Italy in October 2019. Both investigations are ongoing.