Purchase of new uniforms and opening of new lounge at Rome Fiumicino by Alitalia - respect for point 55 of the Rescue and Restructuring Guidelines

Subject: Purchase of new uniforms and opening of new lounge at Rome Fiumicino by Alitalia - respect for point 55 of the Rescue and Restructuring Guidelines

As indicated in question E-002971-181, Alitalia has thrown away uniforms introduced 18 months ago that cost EUR 2 million and has bought new ones designed by Alberta Ferretti that will cost EUR 6-7 million.

Moreover, on 11 June 2018 Alitalia opened a new luxury lounge at Rome Fiumicino.2, 3 This lounge is Alitalia’s biggest ever.4, 5

In January 2018, Italy notified the Commission of a EUR 900 million state bridge loan, granted to Alitalia as rescue aid.

1. What action will the Commission take to ensure that this new lounge has not been financed by the last EUR 900 million of state aid and taxpayers’ money notified as ‘rescue aid’?

2. Will the Commission ask the Italian authorities to provide clarifications about this investment and its compatibility with point 55 of the Rescue and Restructuring Guidelines?

The Commission must surely have a clear position on the EUR 900 million bridge loan and what remains of it. If this public money is not be squandered on more unnecessary and cosmetic investments, it is the Commission’s responsibility to ensure that point 55 of the guidelines6 is respected. The Commission must set the standards in order to avoid other companies imitating this kind of behaviour.

3. What are the timeframe and deadline set by the Commission’s DG for Competition regarding a serious cost-cutting and restructuring plan, to be presented by the Italian Government?

1 http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+WQ+E-2018-

002971+0+DOC+XML+V0//EN&language=en 2

http://partodomani.it/nuovo-lounge-alitalia-a-fiumicino/

3 https://www.aviation24.be/airlines/alitalia/new-casa-alitalia-lounge-at-pier-e-of-rome-fiumicino-airport/

4 https://www.businesstraveller.com/business-travel/2018/06/13/alitalia-opens-new-lounge-at-rome-fiumicino/

5 http://www.travelquotidiano.com/trasporti/apre-casa-alitalia-a-roma-fiumicino-la-piu-grande-lounge-della-

compagnia/tqid-320386

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

Answer given by Ms Vestager on behalf of the European Commission

(11 October 2018)

The Commission is aware of the press reports about the new lounge opened by Alitalia in Rome Fiumicino Airport.

The Commission is continuing its formal investigation procedure into the entire EUR 900 million loan granted by the Italian State to Alitalia. As explained in the replies to written questions E-002971/2018 and E-2240/2018, the Commission is assessing whether that loan constitutes state aid and, if so, whether the relevant conditions for the compatibility of aid to companies in difficulty are met.

The Italian authorities have been asked to provide clarifications about the new lounge, together with the new uniform purchases for Alitalia's crew brought to the Commission's attention in Written Question E-002971/2018. Should the loan constitute state aid, those actions will be carefully evaluated in the light of the Rescue and Restructuring Guidelines, in particular the appropriateness criteria laid down in points 54 et seq.

The Commission is aware of the importance of the case and endeavours to adopt a final decision as promptly as possible in accordance with the provisions of ARTICLE 9 (6) of Council Regulation (EU) 2015/1589 of July 2015 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union (7).

⋅1∙ http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+WQ+E-2018-002971+0+DOC+XML+V0//EN&language=en

⋅2∙ http://partodomani.it/nuovo-lounge-alitalia-a-fiumicino/

⋅3∙ https://www.aviation24.be/airlines/alitalia/new-casa-alitalia-lounge-at-pier-e-of-rome-fiumicino-airport/

⋅4∙ https://www.businesstraveller.com/business-travel/2018/06/13/alitalia-opens-new-lounge-at-rome-fiumicino/

⋅5∙ http://www.travelquotidiano.com/trasporti/apre-casa-alitalia-a-roma-fiumicino-la-piu-grande-lounge-della-compagnia/tqid-320386

⋅6∙ https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52014XC0731(01)&from=EN

⋅7∙ According to the Article 9(6) mentioned above ‘Decisions taken pursuant to paragraphs 2 to 5 shall be taken as soon as the doubts referred to in Article 4(4) have

been removed. The Commission shall as far as possible endeavour to adopt a decision within a period of 18 months from the opening of the procedure. This time limit may be extended by common agreement between the Commission and the Member State concerned.’ OJ L 248/9, 24.9.2015, p. 9.