For several years the airline Alitalia was kept in the air with the help of government funds. The EU Commission has now decided that this was illegal and is calling on the Italian government to reclaim around 900 million euros plus interest.

The decision is likely to be of a symbolic nature, as Alitalia's financial position is very tense. Recently, there were repeated problems with the payment of wages and salaries. Flight operations are to be finally ceased on the evening of October 14, 2021. The successor Ita is not liable for the obligations of the predecessor. This means that the new airline can take off on October 15, 2021 without this legacy.

Specifically affected is the loan granted in May 2017 in the amount of 600 million euros. Just a few months later, another 300 million euros were transferred. According to the EU Competition Commissioner Margrethe Vestager, these are not permitted. The Italian government is now to initiate the reversal.

However, it is considered almost impossible that this will succeed, because Alitalia is in insolvency proceedings and has only been able to pay wages and salaries with state aid in the last few months. It is planned that the carrier will go into liquidation from October 15, 2021. Therefore, the likelihood that the aid that has now been declared illegal can ever be fully repaid is rather low. As mentioned, the decision has no influence on Ita.