According to the statement made by the European Commission on Tuesday, the Italian authorities had positively responded to its June 11 decision to investigate EUR300 million euros (USD$479 million) of Italian state aid for Alitalia.

A statement from the European Union's executive arm noted, "The Commission will make no comment on the content of the response, or any other comment on the substance of the investigation procedure, until it is concluded."

The present probe has in fact dawned as a setback to the efforts of the Italian government to avert an awkward financial collapse of the state-controlled carrier. On the other hand, the 18-month hunt for a buyer still continues on the background.

In June, the EU executive said that the Italian company had earlier incorporated the EUR300 million into its equity capital, which constitutes the aid that is incompatible with the common market. Most notably, if the Commission happens to find that the loan is illegal, this would force Alitalia to repay the entire money to the government.

However, the investigation might take up to 18 months, which would give Italy a good amount of breathing space to find a buyer. On the other hand, Alitalia has long struggled with frequent strikes, inefficiency and political interference. The company has lately been hit by tough competition from several low-cost carriers, drop in passenger bookings and rising oil prices with the fear that the airline might very soon go out of business.