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EUROPEAN COMMISSION Brussels, 29.12.2020 C(2020) 9659 final In the published version of this decision, some PUBLIC VERSION information has been omitted, pursuant to articles 30 and 31 of Council Regulation (EU) This document is made available for 2015/1589 of 13 July 2015 laying down information purposes only. detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union, concerning non-disclosure of information covered by professional secrecy. The omissions are shown thus […] Subject: State Aid SA.59188 (2020/NN) – Italy – COVID-19 aid to Alitalia Excellency, 1. PROCEDURE (1) By electronic notification of 25 December 20201, the Italian Republic notified aid to Alitalia – Società Aerea Italiana S.p.A in Extraordinary Administration (“Alitalia”) in the form of a EUR 73.02 million grant (“the Measure”). This Measure is granted (i) under the fund established by Article 79 of Decree-Law No 18 of 17 March 2020 granting compensation to airlines affected by the COVID-19 outbreak (“the Fund”), in accordance with Article 108(3) of the Treaty on the Functioning of the European 1 The notification followed preliminary exchanges between the Italian authorities and the Commission services, which started on 23 October 2020 with the submission of a pre-notification from the Italian authorities. The Commission’s services sent a request for information on 12 November 2020, to which the Italian authorities replied on 27 November 2020. On 11 December 2020, the Commission services sent an additional request for information to the Italian authorities that replied on 14 December 2020. The Italian authorities and the Commission services hold several conference calls throughout the pre-notification procedure. S.E On. Luigi DI MAIO Ministro degli affari esteri e della cooperazione internazionale P.le della Farnesina 1 I - 00194 Roma Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel. +32 22991111 Union (“TFEU”), and (ii) under Decree-Law 104 (“the August decree”) of 14 August 2020, authorising the Ministry of Economic Development to grant aid in the form of a direct grant up to EUR 250 million to companies meeting the eligibility conditions established by Decree-Law of 17 March 2020 to receive compensation under the Fund. (2) Italy exceptionally agrees to waive its rights deriving from Article 342 TFEU, in conjunction with Article 3 of Regulation 1/1958,2 and to have the present decision notified and adopted in English. 2. DESCRIPTION OF THE MEASURE 2.1. Objective of the Measure (3) Italy considers that the COVID-19 outbreak and the related governmental restrictions severely affected the aviation sector in that Member State. In that context, Decree-Law No 18 of 17 March 20203 provides for the establishment of the Fund of EUR 350 million to make good the damage directly suffered by airlines due to the imposition of travel restrictions and other containment measures linked to the COVID-19 outbreak. (4) To be eligible for damage compensation under the Fund, a company must (i) hold an air passenger license issued by the Italian Civil Aviation Authority (ENAC) and (ii) be entrusted, on the date of adoption of Decree-Law No 18 (i.e. 17 March 2020) with public service obligations pursuant to Regulation (EC) No 1008/2008.4 (5) By decision of 4 September 2020,5 the Commission approved as compatible under Article 107(2)(b) TFEU aid in form of a grant of EUR 199.45 million to Alitalia for damages resulting from the COVID-19 outbreak due to the related governmental restrictions during the period 1 March to 15 June 2020. (6) The present notification extends the period from 16 June to 31 October 2020 (“the Eligible Period”) for which compensation under the Fund can be granted to Alitalia for damages resulting from the COVID-19 outbreak due to the related governmental restrictions. A ministerial decree will establish the detailed arrangements for the application of the provision providing for compensation under the Fund for the additional period. (7) The Measure aims at compensating damages suffered by Alitalia in the Eligible Period caused directly by the COVID-19 outbreak due to the related governmental restrictions on its operations on the following routes: 2 Regulation No 1 determining the languages to be used by the European Economic Community, OJ 17, 6.10.1958, p. 385. 3 Decree-Law of 17 March 2020, No 18, ‘Misure di potenziamento del Servizio sanitario nazionale e di sostegno economico per famiglie, lavoratori e imprese connesse all'emergenza epidemiologica da COVID- 19’, as amended and converted into law by Law of 24 April 2020, n. 27, by Article 202 of Decree-Law of 19 May 2020, n. 34 and by Law of 17 July 2020, n. 77. 4 Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community (Recast) OJ L 293, 31.10.2008, p. 3. 5 Commission decision of 4 September 2020, SA.58114 Alitalia damage COVID 19, not yet published. 2 - Rome Fiumicino (FCO) – New York (JFK) - Rome Fiumicino – Washington (IAD) - Rome Fiumicino – Miami (MIA) - Rome Fiumicino – Chicago (ORD) - Rome Fiumicino – Los Angeles (LAX) - Rome Fiumicino – Boston (BOS) - Milan Malpensa (MXP) – New York (JFK) - Rome Fiumicino – Buenos Aires (EZE) - Rome Fiumicino – Alger (ALG) - Rome Fiumicino – Tel Aviv (TLV) - Rome Fiumicino – Sao Paulo (GRU) - Rome Fiumicino – Rio de Janeiro (GIG) - Rome Fiumicino – Santiago de Chile (SCL) - Rome Fiumicino – New Delhi (DEL) - Rome Fiumicino – Podgorica (TGD) - Rome Fiumicino – Toronto (YYZ) - Athens (ATH) – Tel Aviv (TLV) - Rome Fiumicino – Tokyo (NRT) - Milan Malpensa – Tokyo (NRT) (8) Alitalia meets the eligibility conditions to benefit from compensation under the Fund6 established in March 2020. Italy notified to the Commission the Measure under that Fund in favour of Alitalia. Thus, the present decision only covers the assessment of the aid provided to Alitalia7 and it does not assess the August decree. (9) Italy notified the Measure under Article 107(2)(b) TFEU. 6 See recital 7 of the Commission decision of 4 September 2020. 7 The scope of the present decision does not cover other potential beneficiaries eligible to receive compensation from the Fund or assess the conditions under which compensation can be granted under the Fund itself. 3 2.1.1. Travel restrictions linked to the COVID-19 outbreak (10) The COVID-19 outbreak has resulted in travel restrictions imposed by Member States and third countries and the closing down of the vast majority of passenger air transport domestically, within the Union and globally. Although most of the general confinement measures and border closures adopted by Member States were partially lifted at domestic and Union level in the course of June 2020, the COVID-19 virus continued to pose a serious threat since its outbreak in the first quarter of 2020. As a result, many travel and governmental restrictions remained in place between 16 June and 31 October 2020, in particular on travels to/from third countries. (11) The notification covers damages suffered on certain routes to/from third countries operated by Alitalia listed in recital (7). The following sub-sections list the restriction on travels and flight activities in place in Italy, Greece and in the third countries concerned. 2.1.1.1. Restrictions applicable in Italy on travels to/from third countries in the Eligible period (12) Within the Union, Italy was the first country to be hit by the COVID-19 outbreak. Italy declared a state of emergency on 31 January 2020, when it reported its first cases of COVID-19 infections. Italy prolonged that state of emergency until 15 October 20208, which following further prolongation is still in force as of the date of adoption of the present decision. (13) On 11 June 2020, Italy adopted Decree n°147 prolonging the existing travel restrictions to/from third countries.9 As a general rule, that Decree prohibited all non-essential travels to/from third countries except for essential business, absolute emergency and/or health motives.10 In addition, authorised incoming travelers from third countries were subject to a quarantine period of 14 days after their arrival in Italy. (14) On 30 June 2020, the Ministry of Health issued an Ordinance n°165 of the Ministry of Health prolonging Decree n°147 until 14 July 2020,11 which enlarged the categories of citizens from third countries allowed to enter Italy by adding those who are permanent residents in Italy or studying in Italy. Furthermore, the ban on non-essential travels was lifted for a selected list of third countries, for which Italy only maintained quarantine measures to citizens from those selected third countries on their arrival in Italy.12 8 https://www.gazzettaufficiale.it/eli/id/2020/07/30/20G00112/sg. 9 Decree n° 147 of the President of the Council of the ministers of 11 June 2020, “Ulteriori disposizioni attuative del decreto-legge 25 marzo 2020, No 19, recante misure urgenti per fronteggiare l'emergenza epidemiologica da COVID-19, e del decreto-legge 16 maggio 2020, No 33, recante ulteriori misure urgenti per fronteggiare l'emergenza epidemiologica da COVID-19”. 10 Nationals from other Member States were exempted from the prohibition to enter the Italian territory. 11 Ordinance n°165 of the Health Ministry of 30 June 2020, “Ulteriori misure urgenti in materia di contenimento e gestione dell'emergenza epidemiologica da COVID-19”. 12 The selected list of countries were the following: Algeria, Australia, Canada, Georgia, Japan, Montenegro, Morocco, New Zealand, Rwanda, Serbia, South Korea, Thailand, Tunisia and Uruguay. Montenegro and 4 (15) By Ordinance n°172 of 9 July 2020 of the Ministry of Health,13 Italy prohibited all travels and all indirect/direct flights to/from the following restricted list of third countries as of 10 July 2020: Armenia, Bahrein, Bangladesh, Brazil, Bosnia, Chile, Kuwait, North Macedonia, Moldova, Oman, Panama, Peru and the Dominican Republic.