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Italy refutes 'protectionist' tag on Alitalia rescue plan

BA's parent slams Poste Italiane's injection of funds as 'illegal aid'

Published Tue, Oct 15, 2013 · 10:00 PM
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[MILAN] Italy has denied charges of protectionism over a plan for the postal service to help fund troubled airline Alitalia but British Airways' parent company IAG condemned it as "illegal aid".

The cash-strapped private flag carrier's board gave an initial go-ahead to a plan on Friday to boost capital by 300 million euros (S$507 million) and take a bank loan of 200 million euros.

Publicly owned Poste Italiane would contribute up to 75 million euros to the capital increase, which comes under a threat that all Alitalia planes could be grounded because of jet fuel debts.

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