The European Commission (EC) has authorised the second tranche of a state aid package to Alitalia after a dispute over price leadership and tariff structures was settled.
The agreement will see the Italian flag carrier receive L500 billion ($284 million) as part of an overall package which will eventually be worth L2.75 trillion when a third tranche is paid next May.
According to the Commission, it approved the aid only after the Italian Government guaranteed to see that the EC's state aid conditions were fulfilled.
The "temporary failure" to implement the conditions set out in the original July 1997 agreement "-does not constitute an obstacle to the payment of the second tranche", says the Commission. Alitalia has discontinued its promotional fare campaigns and the Italian authorities have agreed to stop benefiting Alitalia "to the disadvantage of its competitors" in the way it granted applications for traffic rights to third countries.
Source: Flight International