
Article 1 

1. The share of the recapitalisation of Alitalia (AZ Fly) notified by the Italian State and amounting to a maximum of approximately 46 % of €1,2 billion, that is to say approximately €550 million, does not constitute State aid.
2. In accordance with the principle of a private investor operating in a market economy, the operation described in paragraph 1 must take place in compliance with the following conditions:
(a)) recapitalisation will not take place until a formal unconditional commitment to underwrite the successful outcome of the operation has been signed by Deutsche Bank and any other financial institutions with the exception of the usual conditions concerning cases of force majeure, acts of war, terrorism and other similar cases;
(b)) the State's participation is authorised subject to the condition that it subscribes the new shares issued on the basis of the same rights and under the same conditions, at the same price and at the same rate as private investors, without prejudice to the proposed timetable for the underwriting by Deutsche Bank and any other guarantor banks of the successful completion;
(c)) the operation must not be accompanied by any collateral agreement or implicit agreement whereby the Italian State would exonerate the banks from their obligation if the recapitalisation offer was insufficiently subscribed or granted the banks any special discount on the issue price.
Article 2 

1. The investment of €216 million by the public company Fintecna in the company AZ Servizi notified by the Italian State does not constitute State aid.In accordance with the principle of a private investor operating in a market economy, based on the analysis of the viability of the business plan submitted to the Commission, the investment can be made only if the conditions referred to in paragraph 2 are complied with.
2. The contractually agreed added value which will have to be returned to AZ Fly may be transferred to that company only for the part exceeding the forecast internal rate of return on Fintecna's investment, that is to say 25 %:
(a)) once all the proposed transfers have been made, or,
(b)) in any event on 31 December 2008 and in accordance with the valuation of the rate of return.
Article 3 
Italy shall provide the Commission with any reports and documents enabling it to verify:

a)) compliance with the conditions referred to in Article 1 and 2, concerning both the participation of the Italian State and of Fintecna and third parties and particularly the final contracts with the banks and the reports justifying the subscriptions carried out in the context of these capital increases;
b)) compliance with the commitment to repay the bridging loan within eight days of the recapitalisation of AZ Fly, and in any event by 31 December 2005.
Article 4 
The Italian State shall inform the Commission within two months of the date of notification of this Decision of the measures taken to comply with it.
Article 5 
This Decision is addressed to the Italian Republic.
Done at Brussels, 7 June 2005
For the Commission
Jacques BARROT
Vice-President