Cleary Gottlieb successfully represented Alitalia as co-counsel in interim proceedings brought by Alitalia’s largest domestic competitor, Air One, before three Italian lower courts and on appeal. Air One had sought to block Alitalia from acquiring low-cost carrier Volare out of receivership.
Alitalia submitted the highest binding offer for the acquisition of Volare in December 2005. Air One, which had submitted the second highest bid, argued that Alitalia’s bid violated the terms a 2004 E.U. Commission under which Alitalia was allowed to receive rescue aid from the Italian government. All three courts petitioned by Air One agreed with Alitalia’s position that Alitalia had not misused the rescue aid funds and was not barred from participating in the Volare auction because the company had repaid the guaranteed loan prior to submitting its binding offer.