The subsidies provided to Alitalia by the Italian government in response to the COVID-19 pandemic are considered internal market-compatible aid. This is the European Court of Justice's decision, which brings an end to a long-running dispute in the aviation industry. Italy proposed to establish a €350 million fund in 2020 to rectify the damage caused by travel restrictions connected to the COVID-19 epidemic. Airlines eligible for compensation required to hold a passenger air transport licence issued by the Italian Civil Aviation Authority (ENAC) and be entrusted with public service obligations under Regulation (EC) No 1008/2008 of the European Parliament and of the Council of the European Union of September 24, 2008. Alitalia had received two individual aid measures totaling €73.02 million and €199.45 million for the fiscal years 1 March-15 June 2020 and 16 June-31 October 2020. The European Commission concluded, without initiating the formal State aid examination procedure, that the contested measures constituted State aid, albeit in a manner consistent with the internal market. Ryanair has asked the General Court of the European Union in two separate lawsuits to nullify the Commission's decisions on the grounds that no formal procedure had been launched to determine the measures' compliance with the internal market. The European Court of Justice dismissed both appeals in its decision today. According to the Court, Alitalia played a key role in Italian air transportation and the Italian economy, operating over 100 destinations worldwide and carrying over 21 million passengers. As a result, the reasons why the Italian government chose this corporation as the single recipient of the legislation are obvious.
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