The European Commission approves aid for another 40 million to Alitalia

The European Commission gave the green light to new public aid for Alitalia , announced at the end of June and equal to 39.7 million euros.

After approving in May a fourth public aid to Alitalia, justified by the losses caused by the Covid-19 pandemic, the European Competition Authority approved on 2 July 2021 a new support to Italy for its national company in great difficulty. The Commission found that an Italian aid measure worth 39.7 million of euro in support of Alitalia “complies with EU state aid rules”. This measure aims to compensate for the damage suffered by the airline “on certain routes due to the coronavirus pandemic in the period between 1 March and 30 April 2021”.

Rome notified the Commission of this new aid on 25 June in the form of a direct subsidy of 39.7 million euros, “which corresponds to the estimate of the amount of damages caused directly to the airline in this period, according to a link-by-link analysis of suitable links”. This green light follows the Commission’s decisions authorizing Italian measures in favor of Alitalia.

Alitalia is, according to the Commission statement, «one of the main airlines operating in Italy. Its fleet consists of 95 aircraft. In 2019, the airline served hundreds of destinations around the world, carrying around 20 million passengers from its main hub, Rome, and other Italian airports, to various international destinations. The restrictions implemented in Italy and other countries to limit the spread of a second and third wave of the coronavirus pandemic have strongly affected Alitalia’s operations. Consequently, Alitalia has suffered significant operating losses at least until 30 April 2021 ».