EU to launch in-depth probe into Alitalia

Airline Industry Information, Jan 14, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

The European Commission will reportedly launch an in-depth investigation into Italian airline Alitalia next week.

The Commission is to investigate whether the carrier's restructuring plan would break rules prohibiting state aid to airlines, according to the European Union Transport Commissioner Jacques Barrot.

The Commission has already been examining the restructuring plan and the launch of the in-depth probe, which could take 18 months, indicates that it has concerns that elements of the plan might break European Union rules.

A more swift investigation of Alitalia, taking a few months, is possible, but cooperation would be needed from Italian authorities, said an EU source quoted by Reuters.

((Comments on this story may be sent to aii.feedback@m2.com))