(BRUSSELS) - The European Commission said on Tuesday that Italy had replied to its concerns about a state loan to ailing airline Alitalia.

Europe's top competition watchdog launched an in-depth probe into the 300-million-euro (465-million-dollar) loan on June 11, warning at the time that it believed the measure was "incompatible" with EU rules.

The commission said that in the coming days it will take comments from Alitalia's competitors and other interested parties, which will be used in the investigation.

Under the EU rules, Alitalia is banned from receiving public support until 2011 because of Italy's previous assistance to the carrier.

As Alitalia has already benefited from rescue and restructuring aid, Italy cannot, in principle, grant it any more aid.

The commission said in June its probe into the loan would focus on whether it was made on the same terms of a private investor and would allow all interested parties to voice their opinion.

Rival airlines such as Iberia and British Airways have condemned the loan and Air France-KLM chairman Jean-Cyril Spinetta has said the Italian carrier needed an "exorcist" to save it from bankruptcy.

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