EU commissioner positive on Alitalia rescue

A rescue plan aimed at saving Italian airline Alitalia is a good sign for the future of the loss-making flag carrier, the EU'…

A rescue plan aimed at saving Italian airline Alitalia is a good sign for the future of the loss-making flag carrier, the EU's top transport official said today.

The four-year rescue plan intends to unlock a €400 million emergency loan and prevent bankruptcy after unions agreed to thousands of job cuts.

"The arrangement and the agreement is a good sign which should facilitate the relaunch, the recovery of Alitalia," EU Transport Commissioner Ms Loyola de Palacio told reporters.

She said the European Commission would make a complete analysis of the rescue plan, adding that she could not comment further until it had done so.

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The EU executive will analyse the plan to make sure that it does not contain any elements of state aid and also ensure the Italian government keeps its promise to reduce its 62 percent stake in the airline to 49 per cent or less.