Ready to take off again: Condor got approval for a €550 million state guarantee.
Condor takes off again: The German leisure charter airline has received clearance from the European Commission for a €550 million state-guaranteed public loan it had applied for in order to avoid liquidity bottlenecks.
Condor continues to fly: The German leisure carrier will get a loan from the German government’s corona shield programme which is guaranteed by the Federal Republic of Germany and the state of Hesse. The EU Commission has already given its approval.
The airline had applied for the guarantee in order to prevent liquidity bottlenecks caused by the impact of the Corona crisis on air traffic and to repay the existing €380 million bridging loan the airline received in autumn of 2019. "Condor flight operations is thus secured", the company says.
The loan consists of two parts – €294 million as corona aid plus €256 million to refinance the bridging loan the airline got after the bankruptcy of its parent company Thomas Cook in late 2019.
After the Cook collapse, Condor fixed a deal last year for a sale to Polish Aviation Group (PGL), the owner of Polish airline LOT. But PGL cancelled the agreement earlier in April as it is in severe financial difficulties, too.
CEO expresses gratitude to governments
"As an operationally healthy and profitable company, Condor has gotten into trouble for the second time in almost half a year through no fault of its own – once by Thomas Cook and then by the effects of the Corona pandemic," said Ralf Teckentrup, CEO of Condor. "We are very grateful to the Federal Government and the Hessian State Government for their support".