European regulators have confirmed plans to launch a formal probe into whether the recapitalisation plan drawn up by ailing Italian flag carrier Alitalia contravenes European Union rules on state aid. The European Commission is to start a detailed analysis of the €1.2 billion ($1.56 billion) recapitalisation of Alitalia's air transport business AZ Fly. The €220 million takeover of Alitalia's ground services division AZ Services by state-owned holding company Fintecna will also be examined. Meanwhile, Germany's Deutsche Bank has signed a letter of intent to underwrite Alitalia's planned €1.2 billion capital increase. Alitalia says the letter has been sent to the EC.
Source: Flight International
