EU Commission Grants Bridge Loan for Condor from German Federal Government and Hesse State Government
The European Commission has approved the six-month bridge loan that was granted by the German Federal Government and the Hessian State Government to Condor Flugdienst GmbH. It was decided that the loan is permissible in accordance with the required state aid investigation procedure. The decision supports Condor to continue its business operations and the traditionally weaker winter booking period can be bridged even after the insolvency of Thomas Cook Group plc. The disbursement of funds will be paid out to Condor gradually via KfW.
Ralf Teckentrup, CEO of Condor Flugdienst GmbH, was eased by the decision from Brussels. "We are very pleased that the European Commission has made such a timely and positive decision. The bridge loan is an important step towards securing Condor's future.”
The positive decision from Brussels is also a further confirmation of Condor's systemic relevance to the European and German markets, emphasizes Ralf Teckentrup. "A healthy business like Condor is also in the interest of a properly operating market, because we are not only a significant competitor in the tourism sector, but also important for the competition in the German and European aviation industry.”
The provisional administrator Prof. Dr. Lucas Flöther also welcomed the EU Commission's commitment. "Condor thus has the necessary liquidity to bridge the winter season and continue business operations in full. The Condor management will now work out a restructuring plan in order to use the shielding procedure to align and set up Condor for a future without Thomas Cook. This plan is then to be adopted in the proceedings opened, which are expected to begin in December. I am confident that at the end of this process a new partner will be found for Condor that will secure a sustainable future for the airline and enable further growth.”
Condor flight operations are continuing as planned. Even immediately after the insolvency of Thomas Cook Group plc, Germany's most popular leisure airline had operated all flights with above-average punctuality values. Furthermore, the booking situation is also encouraging, says Teckentrup, "Our customers and business partners book additional quotas so that the current booking situation even surpasses our expectations. We are already in advanced discussions with all tour operators for a good and successful booking level for summer 2020."
