Follow-up to Written Question E-002222/2019 on the Alitalia State aid case

Subject: Follow-up to Written Question E-002222/2019 on the Alitalia State aid case

In its reply to Written Question E-002222/2019, the Commission stated that it ‘has not yet reached a conclusion’1.

More than a year has passed since Alitalia received EUR 900 million in ‘rescue’ aid that, according to the Commission’s guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty, should be fully reimbursed within six months2. Alitalia has not been sold and has not approved a serious restructuring plan. On the contrary, Alitalia used the EUR 900 million to invest in new routes345 and a new business lounge at Fiumicino airport. Point 55(e) of the abovementioned guidelines clearly forbids such investments6. The loan, which was issued 30 months ago, is now worth over EUR 1.1 billion after accumulating more than EUR 200 million in unpaid interest7.

Some say that Alitalia loses EUR 715 000 per day8; others say the figure is EUR 1 million9.

15 October was the latest deadline, having been postponed seven times to try and agree on a business plan. Now a new EUR 350 million loan has been requested10111213.

1. Given that Alitalia has been kept afloat with repeated tax payer bailouts, will the Commission approve a new loan?

2. How long can the Commission wait to declare this State aid illegal?

3. Can the Commission detail in terms of assets how this ‘new Alitalia company’ can be considered an ‘economic discontinuity’ with regard to the old one?

1 https://www.europarl.europa.eu/doceo/document/E-9-2019-002222-ASW_EN.html

2 OJ C 249, 31.7.2014, p. 1.

3 https://onemileatatime.com/alitalia-san-francisco/

4 http://corporate.alitalia.it/en/media/press-releases-sai/index.html

5 https://airlinegeeks.com/2019/05/03/alitalia-launches-rome-washington-flight-as-financial-struggles-linger/

6 OJ C 249, 31.7.2014, p. 1.

7 https://www.ilsussidiario.net/news/alitalia-i-vantaggi-del-salvataggio-con-il-piano-b/1934770/

8 https://www.corriere.it/economia/aziende/19_ottobre_14/alitalia-perde-ogni-giorno-715-mila-euro-fac2f478-

edd8-11e9-81e9-dd3f6712b5e2.shtml

9 https://twitter.com/AndreaGiuricin/status/1183713318277668864?s=20

10 https://www.ilsussidiario.net/news/alitalia-i-vantaggi-del-salvataggio-con-il-piano-b/1934770/amp/

11 https://www.ilfattoquotidiano.it/2019/10/06/alitalia-prestito-ponte-agli-sgoccioli-solo-tenerla-in-vita-costera-tra-

200-e-350-milioni/5498500/

12 https://twitter.com/ugambini/status/1184785175735099394?s=11

13 https://twitter.com/AndreaGiuricin

Answer given by Ms Vestager on behalf of the European Commission

(28 November 2019)

In April 2018, the Commission opened a formal investigation into the EUR 600 million and EUR 300 million loans granted to Alitalia in May 2017 and October 2017, respectively. This investigation is ongoing. The Commission has to assess each case based on its merits. Taking a final view on the existence and compatibility of aid involves a complex legal and economic assessment.

The Commission is also in contact with Italy on a further loan of EUR 400 million. It cannot prejudge the outcome of these contacts or the timing of possible next steps.

Member States are required to notify the Commission of measures that involve state aid and refrain from putting them into effect, until the Commission has reached a final decision on the existence and compatibility of aid. If a measure is granted without being notified to the Commission, the Commission would open a formal investigation where it has serious doubts about that measure's compatibility with the internal market.

As mentioned in previous replies to similar questions asked in relation to the present Alitalia cas e (14), the Commission analyses the existence of economic continuity using a set of indicia including not only the scope of the assets transferred but also the transfer price, the identity of the buyer, the timing of the transfer and the economic logic of the transaction.

It is for the Italian authorities to determine the terms and conditions of any eventual transfer of Alitalia's assets to a new company. At this stage, in the absence of details in this respect, the Commission cannot take any position on the issue of economic continuity.

⋅1∙ https://www.europarl.europa.eu/doceo/document/E-9-2019-002222-ASW_EN.html

⋅2∙ OJ C 249, 31.7.2014, p. 1.

⋅3∙ https://onemileatatime.com/alitalia-san-francisco/

⋅4∙ http://corporate.alitalia.it/en/media/press-releases-sai/index.html

⋅5∙ https://airlinegeeks.com/2019/05/03/alitalia-launches-rome-washington-flight-as-financial-struggles-linger/

⋅6∙ OJ C 249, 31.7.2014, p. 1.

⋅7∙ https://www.ilsussidiario.net/news/alitalia-i-vantaggi-del-salvataggio-con-il-piano-b/1934770/

⋅8∙ https://www.corriere.it/economia/aziende/19_ottobre_14/alitalia-perde-ogni-giorno-715-mila-euro-fac2f478-edd8-11e9-81e9-dd3f6712b5e2.shtml

⋅9∙ https://twitter.com/AndreaGiuricin/status/1183713318277668864?s=20

⋅10∙ https://www.ilsussidiario.net/news/alitalia-i-vantaggi-del-salvataggio-con-il-piano-b/1934770/amp/

⋅11∙ https://www.ilfattoquotidiano.it/2019/10/06/alitalia-prestito-ponte-agli-sgoccioli-solo-tenerla-in-vita-costera-tra-200-e-350-milioni/5498500/

⋅12∙ https://twitter.com/ugambini/status/1184785175735099394?s=11

⋅13∙ https://twitter.com/AndreaGiuricin

⋅14∙ Replies to E-002337/2018, P-005965/2018, E-006314/2018, and E-001269/2019.