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EU regulators voice doubts on Italy's Alitalia rescue plan

24 April 2008, 14:30 CET

(BRUSSELS) - The European Commission has doubts that an Italian plan to help troubled airline Alitalia is being made on commercial terms, and will seek more details on whether illegal state aid is involved, a spokesman said on Thursday.

"We have doubts about the nature of the measures and we want to have a better understanding of the details," Commission spokesman Michele Cercone told reporters in Brussels.

On Wednesday, the Italian government handed the EU's executive arm details of its deal to bail out Alitalia with 300 million euro (480 million dollar) loan, assuring the Commission that it was being made on commercial terms, the spokesman said.

Italy is currently banned from offering state aid to the ailing airline because of past bailouts and could be forced to recover the money.

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