Air Travel Commission Approves €380 Million German Rescue Aid to Condor by GTP editing team 14 October 2019 written by GTP editing team 14 October 2019 0 comments Share 0FacebookTwitterLinkedinWhatsappEmail 24 Photo Source: @Condor.com The European Commission has approved, under EU State aid rules, Germany’s plans to grant a temporary 380 million euros loan to charter airline Condor. According to the Commission, the measure will contribute to ensuring the orderly continuation of air transport services and avoid disruptions for passengers, without unduly distorting competition in the Single Market. The airline faces an acute liquidity shortage following the entry into liquidation of its parent company, Thomas Cook Group. Furthermore, Condor had to write off significant claims against other Thomas Cook Group companies, which it will no longer be able to collect. Photo Source: .thomascookgroup.com Condor’s provisional administrator Lucas Flöther welcomed the Commission’s decision: “Condor [now] has the necessary liquidity to bridge the winter season and continue business operations in full. The Condor management will now work out a restructuring plan in order to use the shielding procedure to align and set up Condor for a future without Thomas Cook. This plan is then to be adopted in the proceedings opened, which are expected to begin in December,” he said. Meanwhile, Condor’s flight operations continue as planned. Join the 15,000+ travel executives who read our newsletter The Commission’s guidelines on rescue and restructuring aid allow Member States to support companies in difficulties, provided, in particular, that the public support measures are limited in time and scope and contribute to an objective of common interest. Rescue aid can be granted for maximum six months to give a company time to work out solutions in an emergency situation. In the present case, the Commission has taken the following elements into account: The loan will be paid out in installments under stringent conditions. In particular, Condor has to demonstrate its liquidity needs on a weekly basis and new payments will only be paid when all existing liquidity has been used and, Germany is committed to ensure that, after six months, the loan will either be fully repaid, or Condor will carry out a comprehensive restructuring in order to return to viability in the long-term. Such possible restructuring would be subject to the Commission’s assessment and approval. Follow GTP Headlines on Google News to keep up to date with all the latest on tourism and travel in Greece. Share 0 FacebookTwitterLinkedinWhatsappEmail GTP editing team This is the team byline for GTP. The copyrights for these articles are owned by GTP. They may not be redistributed without the permission of the owner. previous post Cyprus Airways Announces Athens – Paphos Service next post SETE 2019 Conference Aims to Spark Innovation in Greek Tourism You may also like Greece’s Hotel Market Sees Major Investments Over Four Months 5 February 2025 Greek Tourism Ministry Monitors Santorini Situation as Seismic Activity Continues 5 February 2025 Global Air Passenger Demand Reaches Record High in 2024, IATA Reports 5 February 2025 Greek PM Reassures Public About Santorini’s Ongoing Seismic Activity 5 February 2025 Milos: Ministry Suspends 5-star Hotel Construction Near Sarakiniko Beach 5 February 2025 ELIME and HELMEPA Join Forces for Safer, More Sustainable Greek Ports 5 February 2025 Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment. Δ