Brussels: The European Commission has given the green light to a £321.2 million restructuring aid package for Condor Airlines, a German charter airline focusing on leisure travel. This decision comes in the wake of a General Court judgment that annulled a previous approval from July 2021, allowing Condor to stabilize its operations after facing insolvency following the liquidation of its parent company, the Thomas Cook Group, in September 2019.
According to Cyprus News Agency, the restructuring aid involves a £90 million debt write-off on a state-guaranteed public loan initially extended by the German development bank KfW, along with a restructuring of the loan’s repayment conditions and a £20.2 million interest write-off. This package aims to facilitate Condor’s return to long-term viability by implementing a comprehensive restructuring plan, with significant contributions from Condor and its private investor, Attestor. The Commission has ensured that the aid includes safeguards to prevent competition distortions in the internal market.
The decision marks a significant step for Condor as it works towards regaining its financial footing and continuing its services in the leisure travel market. This aid package reflects the EU’s commitment to supporting companies facing economic challenges while maintaining fair competition within the market.