British Airways mulls lawsuit against Alitalia aid package

(ANSA) - Rome, October 22 - "Flagrant" State aid that will flow to Italian flag-bearer Alitalia could be grounds for legal action, the parent company of British Airways said Tuesday.

International Airlines Group (IAG), which includes the airlines Iberia and British Airways, is considering taking legal action over a bailout package for the Italian carrier, according to the group's chief executive Willie Walsh.

In a statement in London, Walsh said that IAG is considering a legal challenge to the "flagrant State aid".

Last week IAG warned that it suspected State aid was involved in the bailout package and urged the European Commission to intervene.

Last Friday the EC asked for more information about the Alitalia aid package - particularly, a controversial injection of 75 million euros from Italy's post office - which was recently approved for the troubled airline.

The EC last week expressed concern it had not been given advance notice of measures approved by major shareholders to keep the airline aloft, in order to confirm these were compatible with EU law.

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