BA and Ryanair question whether EU rules broken on Alitalia loan
24.04.08
British Airways said today that it was watching to ensure European Union guidelines on state aid are met following the emergency loan to struggling airline Alitalia. A spokesman for budget rival Ryanair said the loan was illegal.
The Italian government gave Alitalia a €300 million (£242 million) loan on Tuesday to keep it flying until a new buyer is found, after Air France-KLM pulled out. The airline is currently losing more than a million euros a day and the loan is expected to stave off bankruptcy.
However, the European Commission only allows state aid to companies under strict conditions. A BA spokesman said: ‘We will be watching closely to ensure that EU guidelines on state aid are rigidly adhered to.' A Ryanair spokesman said it had complained to the EU about the loan, which it said was illegal.
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