An appeal that Alitalia made in a continuing inquiry about the state’s aid was rejected by the European Court of Justice. In its stuggles, Alitalia challenged the European Commission’s conditions on a state aiding a company for restructure. The latest ruling of the court doesn’t apply any new requirements to Alitalia and the European Commission is considering the case to be settled. The large debts and cost of fuel have made the future of Alitalia unstable. There was a statement that was released on Wednesday that stated that the Court of First Instance has dismissed the action by Alitalia and that the decision made in 2001 by the commission is valid. It also said that the court has confirmed the validity of all the conditions that the commission imposed on the airline.

Among the requirements that the European Commission set for Alitalia, the Italian authorities are only suppose to act as if they are a normal shareholder; any cash injection that Alitalia receives is only suppose to be used for restructuring the company and not for business expansion; Alitalia had to sell the holding it had in Malev, a Hungarian airline; and the aid of the state could only be a one-time payment. Just last month the commission said that they would critically inspect the €300 million that the Italian government loaned to Alitalia in April, which resulted in the airline’s continued operations. Italian ministers are claiming that the loan was given to the airline so that they could buy time to try to locate someone to buy the carrier.

Get more information on Alitalia Airlines at: www.alitalia.com