The European Commission (EC) has launched an analysis into the proposed financial restructuring of Alitalia, following the agreement last July of a loan of 400 million euro (£280 million) in short term aid to help the Alitalia retreat from the threat of bankruptcy.

Under the restructuring, Alitalia was split into two businesses — AZ Fly concering air transpoirt business and ground services firm AZ Services.
The Commission wants the analysis to check that the two operations comply with the principle of a prudent investor operating in a market economy and that the commercial ties between the two companies are in order.

In particular, the EC want to ensure that the loan does not constitute restructuring aid. The airline already benefited from an EC-approved rescue package in 1996-97on a "one time, last time" basis.

EC vice-president Jacques Barrot said: "The Italian authorities have presented a serious industrial plan. Certain parts now have to be checked to confirm that the plan does not contain State aid. I want our analysis carried out swiftly."

Rival airline easyJet has welcomed the EC's decision. Ray Webster, easyJet Chief Executive, said: "Cash injections and a blind eye will not come as a favour to consumers, not least the Italian taxpayer. It is high time that airlines are left to compete with each other on equal terms and with no exceptions to the rule. easyJet looks forward to the outcome of the European Commission's investigation and will continue to denounce all indiscriminate bail-outs for Europe's ailing airlines."