Brussels rules out Alitalia state aid

The European Commission said on Tuesday that further government hand outs to troubled Italian carrier Alitalia would be ruled out.

A spokesman told reporters that the airline had been bailed out in the past and under the EU's "one time last time" state aid policy, the only acceptable government funding would be a "bridging loan".

The EU executive said such "rescue aid" would need the EU's stamp of approval and have to be paid back within a maximum of one year.

Brussels wrote to the airline on April 21 asking for detailed plans of the Italian government's state aid plans.

They have until Friday to respond.

The EU probe was prompted by complaints from at least five airlines including British Airways, Lufthansa and Easyjet.

Alitalia posted losses of €510 million euros last year, and €374 million losses in 2002.

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