Milan (AFP)

The difficult negotiations between Rome and Brussels on a rescue plan to relaunch Alitalia, in great financial difficulty, resulted in a "constructive and balanced solution", announced Thursday the Italian Ministry of the Economy.

Ita, the new company supposed to be born from the ashes of Alitalia, "will be fully operational from October 15, when the first flights should take off," he said in a statement.

"The discussion with the European Commission resulted in a constructive and balanced solution, which guarantees the discontinuity necessary to comply with European regulations", underlines the ministry.

The European Commission for its part contented itself with "taking note of the announcement made today by Italy of the launch of Ita", without mentioning an agreement, but recalling "the agreement on the essential parameters" of the launch of the new company found on May 26.

Brussels "remains in close contact with the Italian authorities to ensure that the launch of Ita as a new viable player in the market complies with EU state aid rules", according to a statement.

- State aid investigation -

At the same time, the European Commission's investigation into the compliance of public support for Alitalia with EU state aid rules "continues".

In 2017 and 2019, Alitalia was granted by the State loans totaling 1.3 billion euros, which are in the sights of Brussels

The agreement with Brussels allows "to launch the procedures relating to the capital increase of Ita and creates the conditions for the signing of the memorandum of understanding for the transfer of certain activities from Alitalia to Ita", indicates Rome.

This recapitalization should initially amount to 700 million euros, AFP learned from a government source.

Brussels had demanded that the future company mark a clear break with its ancestor by notably abandoning the Alitalia logo and by renouncing to accept tickets issued by its predecessor.

Other conditions included the separate sale of maintenance and ground services as well as the transfer of airport slots.

Under pressure from Brussels, the ambitions of Alitalia's recovery plan have been revised downwards, and the agreement should result in job cuts.

# photo1

Alitalia employees who "could be hired in the new company are 2,800 in 2021 and 5,750 in 2022," Economic Development Minister Giancarlo Giorgetti said in a note.

In total, the three branches of the company (aviation, maintenance and ground services) currently have more than 11,000 employees.

The Ministry of Economic Development "will oversee all measures to protect workers and consumers," Giorgetti added.

Buyers of tickets for flights after the October 15 date "will be protected", he said.

"The foundations are being laid for a new strong, sustainable and independent national air carrier, capable of operating discontinuously and with solid prospects for growth and development," said the Ministry of the Economy.

© 2021 AFP