Clear path for the renewal course of the German vacation airline Condor.

The EU Commission released corona and restructuring aid over 525 million euros on Tuesday.

This also seems to have cleared the last hurdle for the announced entry of the financial investor Attestor at Condor, who initially wants to take over 51 percent of the airline.

Timo Kotowski

Editor in business.

  • Follow I follow

Condor was initially in distress in autumn 2019 due to the collapse of the then parent company Thomas Cook and from spring 2020 due to the effects of the corona pandemic.

The transaction agreed with the new investor at the end of May should now be completed in July.

"We are pleased that the EU Commission has granted the necessary state aid approvals so that Attestor can become the majority owner of Condor as planned," said a company spokeswoman.

"This means that all closing conditions are met." The closing, the completion of the majority takeover, will now be formally completed in the next few days and will end with the transfer of Attestor's new equity to Condor.

EU sees contribution to the "Green Deal"

The financial investor, who also has a stake in the car rental company Europcar and is involved in the Volkswagen Group's takeover plans there, announced that it would bring in 200 million euros of fresh equity at Condor. Attestor intends to contribute another 250 million euros for the replacement of the aging Condor long-haul aircraft by leasing new, lower-emission jets. The EU Commission recognizes this intention in its approval, as it contributes to the achievement of the climate protection goals in the EU's “Green Deal”.

The EU Commission had to approve aid for Condor again for two reasons.

On the one hand, the low-cost airline Ryanair had sued against an initial release of corona aid.

The competent EU court in Luxembourg saw deficiencies in the justification for the approval by the Commission and declared the Commission's decision to be null and void.

Now the Commission has made improvements.

On the other hand, Condor is to receive further help for the restructuring under the leadership of the new investor, which is now released.

For example, the federal government and the state of Hesse are each waiving the repayment of 75 million granted aid - a total of 150 million euros.

This also counts as a state contribution to maintaining around 4,000 jobs at Condor.

Aid package device complex

Aviation has been hit particularly hard by restrictions in the pandemic, said Competition Commissioner Margrethe Vestager. With the aid, Condor receives compensation for the economic damage caused by these restrictions. The approved restructuring plan also secures Condor the way to long-term survival.

Because of the combination of various aids, the Commission's explanation of the clearance is complex - and one also wants to prevent further lawsuits. In detail, the commission has now approved corona aid of 204 million euros, of which Condor will have to repay 144 million euros, the aid needed for 2020. The other 60 million euros, this is the value that the need for help due to Corona restrictions in the first five months of 2021 is, will be approved by the federal and state governments as part of the waiver of claims. 321 million euros will be released as restructuring aid for Condor's future course, including a government debt waiver of 90 million euros.

In order to justify the state restructuring aid, the Commission also argues that private contributions made up a larger proportion of the support. New investor Attestor contribute money, creditors waived claims totaling 630 million euros.

Condor has had an anxious time. After Thomas Cook went out, operations could only be maintained in an insolvency-like protective shield proceedings through a loan from the state-owned KfW bank. The federal government and the state of Hesse issued guarantees for this. Condor did not exhaust the 380 million euros provided, but the Polish state-owned aviation company PGL refrained from a firmly agreed takeover during the corona pandemic. Since no money flowed because of the failed takeover, the first Condor aid could not be repaid. Another 550 million euro package was launched for repayment and as corona aid. Part of this is now included in the new package approved on Tuesday.

Condor hopes - also because of the progressive corona vaccinations - for a quick recovery in travel. After internal savings rounds, the new long-haul fleet should further increase efficiency. With the new Lufthansa brand Eurowings Discover, Condor is also facing a competitor who now wants to offer identical long-haul connections for holidaymakers.