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  • Italy's government said Wednesday it had passed an "important step" in negotiations with the European Commission to create a new, leaner airline from its beleaguered Alitalia carrier, Italian media reported. Italy, which has been in talks with the commission for months over plans for the new airline, provisionally called ITA, said parameters had been established to ensure that Ita be fully independent of Alitalia, although technical details were still to be worked out. "Surely today is an important step towards the solution of the problem (of Alitalia)," said Italy's minister of economic development, Giancarlo Giorgetti, as quoted by Italian news reports. Giorgetti had met with the commission's vice president, Margrethe Vestager, together with Italian Economic Minister Daniele Franco. "The technical process begins for the birth of a sustainable company, the new Alitalia which must be operational as soon as possible, likely in August", Giorgetti said, cautioning that conditions were being defined and the process "is not over". The European Commission, charged with policing state aid in the EU, needs to give its go-ahead to Italy's 3 billion euro ($3.6 billion) bailout of Alitalia, its former flag carrier. Under the plan, the new debt-free company would take over part of Alitalia's assets. But Brussels had set tough conditions for its go-ahead, including the partial sale of Alitalia slots at Milan's Linate airport and the adoption of a new logo to mark a clean break with the past. The European Commisssion said after Wednesday's meeting that it "supports Italy's efforts to prepare the launch of Ita as a new and viable market player as soon as possible in line with EU rules". "Following intense and constructive discussions at all levels, the Commission and the Italian authorities have reached a common understanding on the key parameters to ensure economic discontinuity between ITA and Alitalia. Contacts will now continue at full speed at technical level," the EU executive said. The new Alitalia would see its fleet halved to fewer than 50 planes and have its workforce reduced to around 4,500, from around 11,000 today. Loss-making Alitalia, whose financial condition has worsened under the coronavirus pandemic, was placed under state administration in 2017 and Italy has struggled in vain since then to find outside investment. ams/del/har
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  • Rome says key Alitalia hurdle passed in European Commission
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