Italy to respond to EU's Alitalia query

Rome - Italy's European Union Affairs Minister, Andrea Ronchi, said the government would comply with a European Commission deadline Friday to provide details on a proposed multimillion-euro bail-out for airline Alitalia.

The commission gave Italy until May 19 - but subsequently extended the deadline to Friday - to respond on the 300 million euros (467 million dollars) in credit intended for the ailing, state-controlled Alitalia.

The authorities in Brussels, doubt the regularity of the bail-out since it could be considered a government subsidy, which is banned in the European Union.

The Italian government told the commission earlier this month the package was a standard loan and normal market practice.

On Thursday, Italian Economy Minister Giulio Tremonti, said the loan would "safeguard" the bankruptcy-threatened Alitalia "for the next 12 months."

The loan was initially approved by the former centre-left government of premier Romano Prodi, as an emergency measure to keep Alitalia afloat after French-Dutch carrier Air France-KLM pulled out of a buy-out offer.

During his election campaign, Prime Minister Silvio Berlusconi, who took office earlier this month, vowed he would fight to keep Alitalia in "Italian hands" and said a local consortium was ready to make a bid for the airline, but to date no candidates have come forward. (dpa)

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