In coordination with the State of Hesse, the Federal Government has announced further support for the airline Condor Flugdienst GmbH.
said: “The Federal Government and the State of Hesse will continue to support Condor in these difficult times. The company was operationally healthy and profitable in normal times and has good prospects. We have agreed on a KfW loan totalling €550 million.”
“The aviation industry is of vital importance to Hesse’s economy. It is therefore in our interest to make sure that Condor, as a major employer and company headquartered in Hesse, will weather this crisis. This is the second time Condor has been hard hit through no fault of their own. Recently, the tourist carrier was doing quite well. This is why we stand side by side with the Federal Government in our continued support for the airline as we meet the need for further financing created by the coronavirus crisis. We hope this will allow Condor to weather this crisis,” said Hesse’s Minister of Finance Michael Boddenberg and Economic Affairs Minister Tarek Al-Wazir.
Following the insolvency of its parent Thomas Cook last year, the coronavirus crisis has put Condor in yet another difficult situation that is due to external circumstances. Since 19 March 2020, Condor has been forced to cease normal operations almost completely. Moreover, Polish Aviation Group (PGL) withdrew from the purchase agreement amid the coronavirus crisis.
Condor has been granted federal and state support in the form of a government-guaranteed KfW loan with a total volume of €550 million. This means that a new credit line is being provided to mitigate the impact of the operational shutdown caused by the coronavirus crisis. Condor will thus be able to continue its operations.
The support measures were put together by the Federal Ministry for Economic Affairs and Climate Action, the Federal Ministry of Finance, the Federal Ministry of Transport and Digital Infrastructure, the Federal Chancellery, and the Hessian ministries of finance and economic affairs.
After a swift and constructive procedure, the European Commission has given its approval for the measure under state-aid rules. It announced its decision today.