Ryanair launches EU lawsuit against Alitalia over loan

Dublin  - Irish low-cost carrier Ryanair said Thursday that it had filed a lawsuit with the European Commission against Alitalia over a 300-million-euro (470-million-dollar) Italian government loan.

"Alitalia's latest 300-million-euro bailout makes a mockery of EU state aid rules.

"Propping up an inefficient national airline, which would have gone bankrupt long ago is simply illegal.

"Continued unlawful subsidies are allowing Alitalia to ignore its debts and rack up losses with abandon," Ryanair's Jim Callaghan said in a statement.

The Italian government on Tuesday announced plans to lend Alitalia 300 million euros to keep the company afloat after Air France pulled out of an offer to buy the ailing carrier.

Under the EU's rules, Alitalia - which was granted a government bailout in 2001 - cannot be given more state aid until 2011.

However, the current loan would not be classed as "state aid" if it were offered at competitive commercial rates, EU officials said, stressing that they have as yet reached no conclusion on the issue.

The Italian government informed the commission, which oversees the implementation of EU law, of its plans on Wednesday, officials in Brussels said.

Commission officials are set to request more information from Rome in the next few days, the commission spokesman said. (dpa)

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