Skift Take
In a spat with parallels to U.S. airlines several years ago objecting to governmental aid to Gulf carriers, Ryanair will deal with the uphill fight of trying to obstruct the Italian federal government’s funding of a brand-new airline, Italia Trasporto Aereo.
Dennis Schaal
Ryanair will appeal versus funds provided to the government-owned Italian airline company that will change Alitalia as it considers them unlawful state assistance, the chief executive of the Irish provider said on Saturday.
“As soon as this money will be injected in the newco we will take the (due) actions,” CEO Eddie Wilson told Italian everyday la Repubblica in an interview.
“We are waiting to see, however it is clear that it is illegal aid and we will protect our interest by appealing versus this umpteenth loan,” he added.
Italy is close to a handle the European Commission to introduce Italia Trasporto Aereo (ITA), which was initially expected to start flying once again in April.
Under the relaunch, the government prepares to inject 3 billion euros ($3.65 billion) into ITA, which would take control of the assets of the old Alitalia.
“I have the impression that there’s nothing brand-new, ITA will simply be the extension of Alitalia … with the very same issues seen for decades, cash being drained from public resources into an airline company that today, like yesterday, will lose cash,” Wilson said.
Recently Ryanair advised the EU to need ITA to bid competitively for Alitalia’s airport slots. Ryanair has actually made no secret of its interest in getting Alitalia slots.
The European Union competitors guard dog is evaluating past and present Italian state help to Alitalia, with a decision expected in coming weeks.
Under EU state help guidelines, there requires to be financial discontinuity between ITA and Alitalia for Brussels to allow Rome to inject the funds into the new carrier.
($1 = 0.8220 euros)
(Reporting by Giulia Segreti Editing by Mark Potter)
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