EU Commission says Italy needs to notify Alitalia bailout

Italy will have to notify a planned government-led 500-million-euro bailout of near-bankrupt airline Alitalia to EU regulators who will then assess whether the measure complies with EU state aid rules, the European Commission said on Monday.

"We expect Italian authorities to notify the envisaged measure to the European Commission," Antoine Colombani, EU Commission spokesman for competition policy, said in an email.

"Only after receiving the notification will we be able to assess its compatibility with EU state aid rules," he said.

International Airlines Group said earlier on Monday that Italy's rescue of near-bankrupt airline Alitalia was "illegal" and urged the EU's executive arm to intervene.

(Reporting by Foo Yun Chee; Editing by Martin Santa)