Follow-up to Question E-002337-18 - 'rescue aid' of EUR 900 million to Alitalia and the decision to buy new uniforms, and the postponement of reimbursement of the loan

Subject: Follow-up to Question E-002337-18 - 'rescue aid' of EUR 900 million to Alitalia and the decision to buy new uniforms, and the postponement of reimbursement of the loan

Referring to ‘rescue aid’, Point 55(e) of the Commission Guidelines on state aid for rescuing and restructuring states: ‘Rescue aid may not be used to finance structural measures, such as acquisition of significant businesses or assets, unless they are required during the rescue period for the survival of the beneficiary.’ Point 60 states: ‘Rescue aid must be restricted to the amount needed to keep the beneficiary in business for six months.’1

The Italian Senate approved the Alitalia decree that extends the deadline for the completion of the transfer procedure to 31 October 2018 and for the full repayment of the EUR 900 million ‘rescue’ loan to 15 December 20182 3.

Moreover it is now public knowledge that the ‘new’ Alitalia has thrown away 18-month-old uniforms that cost EUR 2 million and bought new ones designed by Alberta Ferretti4 that will cost EUR 6-7 million5 6 7.

1. Can the Commission explain how these new uniform purchases can be considered compatible with Point 55(e) and the disbursement of rescue aid that is normally authorised merely to ensure the survival of a company?

2. Have the Italian authorities provided a detailed restructuring plan including all cost-cutting measures such as cuts to staff and unprofitable routes?

1 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52014XC0731(01)&from=EN

2 http://www.senato.it/3818?seduta_assemblea=8

3 http://www.ilsole24ore.com/art/notizie/2018-05-30/dl-alitalia-si-senato-decreto-che-proroga-date-cessione-e-

restituzione-prestito--131527.shtml?uuid=AEHQYGxE 4

http://madame.lefigaro.fr/style/alberta-ferretti-cree-devoile-les-nouveaux-uniformes-compagnie-italienne- alitalia-photos-croquis-300518-

148954?utm_campaign=Echobox&utm_medium=Social&utm_source=Twitter#link_time=1527695497 5 http://www.linkiesta.it/it/article/2018/04/28/alitalia-gli-sprechi-non-finiscono-mai-2-milioni-di-euro-di-divise- fin/37900/ 6

https://www.corriere.it/cronache/18_maggio_30/alitalia-presenta-nuove-divise-cbeda324-6412-11e8-9b4c- 0d37dd8c9cfa.shtml 7

http://www.repubblica.it/economia/2018/05/30/news/alitalia_le_nuove_divise_il_15_giugno_in_passerella- 197736195/amp/?__twitter_impression=true

Answer given by Ms Vestager on behalf of the European Commission

(25 July 2018)

In January 2018, Italy notified the Commission of a EUR 900 million State bridge loan granted to Alitalia as rescue aid. The Commission in April 2018 decided to open an in-depth investigation to assess whether this measure constitutes state aid and whether it complies with EU rules for aid to companies in difficulty (as also explained in the reply to Written Question E- 002240/2018). The non-confidential version of this decision was published on the Directorate-General Competition website in June 2018 (8). As soon as the decision is officially published in the Official Journal of the EU, this launches the consultation period of interested parties, who will have the opportunity to submit their views.

The Commission has seen the information in the press about new uniform purchases for Alitalia's crew. This will be carefully evaluated by the Commission in the context of its ongoing investigation. In particular, according to the appropriateness criterion of compatibility, laid down in point 55 of the Rescue and Restructuring Guidelines, any rescue aid must consist of temporary liquidity support to the beneficiary. In that regard, the Italian authorities will be asked to provide clarifications about the purchase of any new set of uniforms.

As explained in the reply to Written Question E-002337/2018, no detailed restructuring plan has been provided to date in this case.

⋅1∙ https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52014XC0731(01)&from=EN

⋅2∙ http://www.senato.it/3818?seduta_assemblea=8

⋅3∙ http://www.ilsole24ore.com/art/notizie/2018-05-30/dl-alitalia-si-senato-decreto-che-proroga-date-cessione-e-restituzione-prestito--131527.shtml?

uuid=AEHQYGxE

⋅4∙ http://madame.lefigaro.fr/style/alberta-ferretti-cree-devoile-les-nouveaux-uniformes-compagnie-italienne-alitalia-photos-croquis-300518-148954?

utm_campaign=Echobox&utm_medium=Social&utm_source=Twitter#link_time=1527695497 ⋅5∙ http://www.linkiesta.it/it/article/2018/04/28/alitalia-gli-sprechi-non-finiscono-mai-2-milioni-di-euro-di-divise-fin/37900/ ⋅6∙ https://www.corriere.it/cronache/18_maggio_30/alitalia-presenta-nuove-divise-cbeda324-6412-11e8-9b4c-0d37dd8c9cfa.shtml ⋅7∙ http://www.repubblica.it/economia/2018/05/30/news/alitalia_le_nuove_divise_il_15_giugno_in_passerella-197736195/amp/?__twitter_impression=true ⋅8∙ http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_48171