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European Commission Approves Italian Aid Measure for Alitalia, Valued at €39.7 Million

Strategic Insights

— 2 min read

The European Commission has found that an Italian aid measure of €39.7 million to support Alitalia, Italy's major network airline, is in line with EU State aid rules. The measure aims to compensate Alitalia for damages suffered on certain routes due to the coronavirus outbreak during the period between 1 March and 30 April 2021. This is part of the EU's efforts to mitigate the economic impact of the pandemic on airlines and other companies.

Key Takeaways:

  • The European Commission has approved an Italian aid measure of €39.7 million to support Alitalia, Italy's major network airline.
  • The measure aims to compensate Alitalia for damages suffered on certain routes due to the coronavirus outbreak during the period between 1 March and 30 April 2021.
  • This is the fifth decision by the Commission approving Italian aid measures in favor of Alitalia, with previous decisions dating back to September 2020.
  • The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or sectors for damage directly caused by exceptional occurrences.
  • The Commission found that the measure is proportionate, as the route-by-route quantitative analysis submitted by Italy appropriately identifies the damage attributable to the containment measures, and therefore the compensation does not exceed what is necessary to make good the damage on those routes.
  • The Commission considers that the coronavirus outbreak qualifies as an exceptional occurrence, as it is an extraordinary, unforeseeable event having significant economic impact.
  • This decision follows the Commission's Communication on a Coordinated economic response to the COVID-19 outbreak, which sets out the possibilities for Member States to compensate specific companies or sectors for the damage suffered directly caused by exceptional occurrences, such as those caused by the coronavirus outbreak.
  • The Commission has also adopted a State aid Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the coronavirus outbreak.

Statistics:

  • €39.7 million: Value of the Italian aid measure approved by the European Commission.
  • 1 March - 30 April 2021: Period during which Alitalia suffered damages due to the coronavirus outbreak.
  • €900 million: Value of loans granted to Alitalia by Italy in 2017, which are currently under investigation by the Commission.
  • €400 million: Value of an additional loan granted by Italy to Alitalia in October 2019, which is also under investigation.
  • 2019: Year in which Alitalia served hundreds of destinations all over the world, carrying about 20 million passengers from its main hub in Rome and other Italian airports to various international destinations.
  • 95: Number of planes in Alitalia's fleet.

Sources:

  • European Commission. (2021, July 2). European Commission clears €39.7 million Italian aid measure to support Alitalia. Retrieved from
  • European Commission. (2020, March 19). Temporary Framework for state aid measures to support the economy in the context of the COVID-19 pandemic. Retrieved from

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