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Thomas Cook bankruptcy: EU approves state credit for Condor

2019-10-14T11:05:29.411Z


Condor now has planning security: The EU Commission has approved the state credit. The federal government and the state of Hesse provide the insolvent holiday airline 380 million euros.



Already three weeks ago there were signals from Brussels, now the European Commission has approved the state bridging loan for Condor. The planned 380 million euros of the state-owned bank KfW did not distort competition in the EU too much, informed the Brussels authority. For the time being, planning security for the German airline subsidiary of the bankrupt British travel group Thomas Cook has been established.

Condor is an important partner of various tour operators. The previously profitable airline with just under 60 aircraft and 4,900 employees wants to survive the winter in a so-called protective screen procedure. It should be prevented that money flows to the British mother.

The money will "contribute to the proper maintenance of air services in the interest of passengers," the European Commission said. It is subject to strict conditions: The sum will be paid in installments, Condor must prove its liquidity needs weekly. Germany has also pledged to ensure that Condor will either repay the loan in full after six months or undertake a major restructuring to become viable again.

Recently, there had been displeasure in the competition over the pricing policy of Condor. The airline had tickets at times considerably cheaper after granting the state aid. However, Condor rejected the suspicion of using the loan for dumping offers.

The British parent company Thomas Cook as well as the German event subsidiary with travel brands such as Neckermann, Öger or Bucher had recently filed for bankruptcy. Thomas Cook had already launched its airlines in February, but ultimately did not complete a deal. Currently, the Condor leadership is looking for investors. According to insiders, there must be a solution by the end of March.

Source: spiegel

All business articles on 2019-10-14

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