EC steps up pressure on Alitalia

The EC stepped up pressure on Italy today to explain its decision to force rivals of struggling state owned airline Alitalia to raise prices on long-haul flights from Rome.

“Fares going up is not good for consumers,” said Amelia Torres, spokeswoman at the European Commission.

She said the commission’s competition authorities had sent a new letter to Rome outlining their concerns and were awaiting a reply, “probably in September”.

Rivals have called Italy’s action unfair and complained to Brussels.

The commission criticised Italy for ordering European airlines to stop undercutting Alitalia on long-haul flights originating in Rome, but said there was little Brussels could do because the action was covered by old bilateral treaties.

Most EU countries have such treaties, which date back decades, but airlines say the clause on prices is rarely invoked.

Alitalia is struggling to stay aloft amid cut-throat competition from discount carriers and consolidation among the big players.

The airline, which is 62% owned by the state, last achieved an operating profit in 1998.