Germany to Rescue Condor with Bailout Following Thomas Cook Insolvency
A Condor aircraft taking off from Frankfurt Airport
The German government said Tuesday that it plans to provide a €380 million ($418.6 million) bridge loan to Condor Flugdienst, an airline that is a subsidiary of Thomas Cook Group.
Thomas Cook Group collapsed late Sunday, stranding tens of thousands of travelers across the globe. Condor, while a subsidiary, is a separate legal entity from Thomas Cook.
The move enables Condor to continue flying, said Bundesminister für Wirtschaft und Energie or Federal Minister for Economic Affairs and Energy Peter Altmaier, adding it will protect the jobs of 5,000 employees.
The loan will be provided by the KfW, a state development bank and will be backed by the German government. It is subject to approval by the European Commission.
“Condor is a profitable company and therefore our decision was based on economic factors, not on political criteria,” said Altmaier.
The deal calls for Condor, which is headquartered in Frankfurt, to be removed from the joint liability agreement with Thomas Cook to ensure that the airline’s assets aren’t liquidated.
Condor operates a significantly larger fleet than its parent. The German airline has a largely Boeing fleet of 58 aircraft including 15 757 single-aisle jets and 16 twin-aisle 767s. Thomas Cook had 38 aircraft when it collapsed.
(Photo: Accura Media Group)
