EU extends Alitalia loan deadline to May 30

Tue May 13, 2008 11:57am BST
 
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BRUSSELS, May 13 (Reuters) - The European Commission has extended a deadline for Italy to provide further information on an emergency loan to ailing airline Alitalia (AZPIa.MI: Quote, Profile, Research) until May 30 to give the new government more time, a spokesman for the EU executive said on Tuesday.

Alitalia said last week it had received the 300 million euro ($463.7 million) bridge loan awarded by the former centre-left government to keep the flag carrier flying until a new buyer is found.

The Commission voiced doubt about the legality of the loan on April 24 and said it needed more information to determine whether it was granted on commercial terms that a private investor would set or whether it constituted illegal state aid. Brussels originally demanded a reply within 10 working days. (Reporting by Paul Taylor, editing by Dale Hudson)

 

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