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Ryanair files EU complaint over Alitalia rescue



By AP
02 October 2008 @ 11:58 pm AEST

BRUSSELS, Belgium - Ireland's low-fare airline Ryanair filed a complaint Thursday with the European Union over Italy's rescue deal for the national carrier Alitalia.

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Ryanair said the bailout amounted to illegal protection of failed companies by national governments, something that the 27-nation EU tries to outlaw.

"This is the latest and perhaps most blatant example of the Italian government doing whatever it takes to protect their failed airline," said Ryanair director Jim Callaghan. Under the deal drafted by investors, the government is selling its 49.9 percent stake in the company.

The EU Commission said the complaint from Ryanair will be addressed as any other it receives.

Ryanair claimed the EU Commission had already failed to enforce EU state aid rules in cases concerning Olympic, Air France and Lufthansa airlines.

Italian investors have pledged to inject 1 billion euros ($1.4 billion) into the money-losing carrier, strip away unprofitable assets and combine it with Italy's second-largest carrier, the much smaller Air One.

They also are looking for an international carrier, possibly Air France-KLM or Lufthansa, to take a minority share.

Ryanair threatened to take the case to the European courts if the EU Commission backs the deal.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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