EU probes 400 million-euro state loan to Italian airline Alitalia

• The Commission said in a statement that the opening of the probe did not prejudge its outcome.
• The Italian government earmarked the 400 million euros in fresh funds for Alitalia in December to keep it afloat until a rescuer could be found, but the money is conditional on EU approval.

BRUSSELS: The European Commission said Friday it has opened a detailed investigation into an Italian government loan of 400 million euros ($440 million) to struggling flagship airline Alitalia to determine whether the aid broke competition rules.

The Commission said in a statement that the opening of the probe did not prejudge its outcome.

Alitalia is in dire straits, losing market share and revenue to low-cost competitors and racking up debts. It was placed in administration in 2017 and Rome has been seeking investors to rescue it, so far in vain.

The Italian government earmarked the 400 million euros in fresh funds for Alitalia in December to keep it afloat until a rescuer could be found, but the money is conditional on EU approval.