EU nixes state aid for Alitalia

The European Union nixed the chance for any state aid from Rome to help Italy's troubled national carrier Alitalia, Italian news Agency ANSA reported on Wednesday.

"The way to resolve Alitalia's problems is not through state subsidies. The airline's problems are industrial in nature," a spokesman for EU Transport Commissioner Jacques Barrot said on Wednesday.

Italian Premier Romano Prodi met with unions on Tuesday and told them bluntly that Alitalia "is going through the worst moment in its history. The situation is totally out of control and I do not see any parachutes".

"We have until January to hammer out a solution which can avoid bankruptcy," he added.

According to the premier, any solution for the airline must be found through the market and by re-evaluating the company's priorities and vocation.

Prodi said that Alitalia must be placed at the center of air transport policy, the way national carriers are in other countries.

Source: Xinhua