EUR 500m aid to Condor Airlines by the Federal government and from Hesse
The European Commission's green light to State aid arrived today with "rapid procedure"
Following to the financial difficulties of the parent company, Thomas Cook Group, the German leisure airline based in Frankfurt am Main, Condor Airlines, had asked the Berlin's Government a bridging loan, which was granted last Friday to it in the sum of 380 millions of Euros 100% guaranteed by the German federal government, according to the local Ministry of Economy. A breath of fresh air that "offers the company the opportunity to continue commercial and flight operations, and that also offers a perspective to the airline's nearly 5000 employees".
The ministry returns today to the issue by announcing that the government, in agreement with the State of Hesse, will provide further support to the airline. Peter Altmaier, Federal Minister for Economic Affairs, states it: "The federal government and the State of Hesse continue to support Condor in this difficult time. The company was functionally healthy and profitable in normal times and has good prospects for the future. We agreed a loan for a total volume of EUR 550m".
“Air traffic is very important for the economy of Hesse. We must therefore look to Condor as a great employer and as a company based in Hesse, ensuring that it can survive this crisis. Condor is now hit hard for the second time (after the consequences of Thomas Cook's insolvency last year, Editor's note), and not its fault". This is the reason for the government's commitment to cover the additional financial needs caused the air transport crisis due to the pandemic emergency, said the ministers of Finance and Economy of the State of Hesse, Michael Boddenberg and Tarek Al-Wazir, respectively.
The airline has had to almost completely cease its normal flight operations since March 19. In addition, due to Covid-19 the Polish PGL has disengaged from an important contract, marking a further loss for the German company. The support by the two governments, federal and Hesse, will allow it to mitigate the consequences of aircraft downtime and allow it to survive. Just today through "a quick procedure", the note concludes it, the European Commission has granted its approval to this State aid for more than half a billion.
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