Alitalia investigation: the Italian state has 400 million EURO to recover!
The European Commission (EC) has ruled that the 400 million euro ($431,1 million) loan granted by the Italian state to Alitalia in 2019 is illegal, saying the authorities must recover the funds it gave the company bankrupt airlines.
On March 27, 2023, the European Commission concluded that Italy did not act properly when it helped the state-owned company Alitalia, because it did not assess in advance the likelihood of repayment of the loans. In addition, the Commission pointed out that the aid "cannot be approved as rescue aid" under the legislation on rescue and restructuring aid" because Alitalia had already received two loans in 2017.
Accordingly, the EC concluded that “Italy must now recover €400 million ($431,1 million) in illegal state aid plus interest from Alitalia". Only Alitalia no longer exists!
Alitalia declared bankruptcy in October 2021, ITA Airways immediately succeeding the airline on the same day of October 15, 2021. However, the Commission previously ruled that ITA Airways "is not the economic successor of Alitalia", which is why the new Italian state carrier will not be required to repay the debt of 400 million euros ($431,1 million) plus interest.