The Italian Competition Authority, at its meeting on 24 October 2007, decided to set up a review of the measures imposed on Alitalia at the time it took over Volare.

In particular, the Authority must determine whether the continuing uncertainty as to the ownership of the Volare group of companies and the changed development prospects for Alitalia in the domestic airline industry in Italy have sufficiently altered the legal framework and the market conditions the measures were supposed to address to warrant their revocation or amendment.

In its decision of 5 July 2006, the Authority had authorized the acquisition of Volare Group, Volare Airlines and Air Europe on the condition that Alitalia relinquish two pairs of slots at Linate airport on the Milan-Paris route, a pair of slots on the Linate-Bari route and a pair of slots on the Linate-Lamezia Terme route; on all these routes, it had been established that a dominant position would be created or strengthened.

The deadline for carrying out these measures was subsequently deferred in view of the uncertainty over the definitive ownership of the Volare set of companies, caused by litigation as to the result of the bidding process. The latest deadline, in order to allow the slots to be transferred for IATA's Winter 2007 season, would fall on this 28 October.

In the Authority's view, carrying out the measures imposed on Alitalia could, at this juncture, prejudice the rights of third parties if the airline turned out not to have definitively won the bidding competition  for the Volare group of companies: a change in the slots' ownership would impact various airlines' organization of flight plans in terms of routes, timetables and related commercial activities.

It is also necessary to take into consideration the alterations that have taken place in the domestic airline industry and the consequent changes to Alitalia's competitive positioning in that market, as well as Alitalia's downsizing plans as documented in the company's Industrial Plan for 2008-2011 and the hypothesis that the company may soon be sold.

Both Alitalia and AirOne had separately appealed for the decision authorizing the merger to be repealed.

Rome, 27 October 2007