Alitalia receives euro300 mn loan from Italian govt

ROME: Alitalia said on Monday it had received the euro300 million (US$464 million) loan that the Italian government approved last month to stave off bankruptcy.

The European Union has warned that the bridge loan may violate competition rules on state aid and a decision from Brussels is expected later this month.

The European commission wants to determine whether Alitalia, the struggling state-controlled air carrier, which had just euro170 million in cash and short-term credit at the end of March, would have been able to obtain the money from a commercial lender.

Alitalia rivals, such as Irish low-cost airline Ryanair, have urged the EU to rule that the Italian government loan is illegal.