Signals in early July that Italian transportation minister Claudio Burlando and EU Transport Commissioner Neil Kinnock may be moving towards some sort of compromise on the opening of Milan's new Malpensa airport have proved unfounded. Talks between the two broke down in mid-July and the row has now escalated to threats of legal action.

The crux of the problem is the inadequate road and rail infrastructure needed to support the new airport, which is 35 miles from the city centre. The existing facility at Linate is less than 5 miles from Milan. It is proposed that all flights will transfer to Malpensa in October, with the exception of the Linate-Rome shuttle operated by Alitalia. The arrangement triggered complaints from nine airlines, including British Airways, Lufthansa, Air France, KLM and Sabena. Kinnock, who wants a transitional transfer period, has written to prime minister Romano Prodi saying that, as the transfer discriminates against the competition, the L2.75 trillion ($1.6 billion) state aid package agreed for Alitalia last year could now be under threat.

Before the talks, Burlando seemed to be taking a conciliatory stance, saying a transitional period before flights are transferred was an option. Kinnock has asked his team to draft a prohibition of the Malpensa plan for approval by commissioners after the summer break. 'If it is necessary [to outlaw the plan] I most certainly will do it. It is a matter of upholding the law,' he says. Malpensa cost L2 trillion to build, with L400 billion of the cost met by the European Investment Bank (EIB). Massimo Ponzellini, EIB vice-president, expects the transfer of flights to be postponed by about eight months.

Source: Airline Business