AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Italian carrier Alitalia has stated that it must receive a EUR400m government-backed loan by the end of September 2004.

The Italian government approved a loan for the struggling airline last month. However, the European Union has warned Italy that it must obtain approval from Brussels before guaranteeing the loan.

The government-guaranteed bridge loan is expected to help the carrier avoid a bankruptcy filing, The Associated Press reported.