Undercut Branson complains to EC

Richard Branson’s low-cost airline has complained to the EC that Italian flagship carrier Alitalia has been setting prices below cost.

Belgium based Virgin Express said the Italian airline was selling seats on some of its routes at a loss.

Alitalia is on the verge of bankruptcy, and the Italian government is putting together a financial aid package. But Italian authorities will need the approval of EU Competition Commissioner Mario Monti to bail out the national airline.

“Alitalia is putting out its hand in order to get taxpayers’ money,” said Virgin spokesman Yves Panneels. ”On the other hand, they’re using predatory pricing tactics.”

Panneels said a Virgin Express analyst had prepared a comprehensive study on Alitalia’s prices which shows that Alitalia’s prices are 25% to 30 % below the rest of the market on routes like Brussels to Rome and Amsterdam to Rome Fiumicino.

There was no immediate comment from the European Commission or Alitalia.