State assistance for Condor
Condor Flugdienst GmbH, with registered offices in the German state of Hesse, is to be granted a KfW loan of 380 million euros that is 100% guaranteed by the federal government. The decision has now been taken by the German government, saving 5,000 jobs.
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A Condor plane takes off in Frankfurt am Main. About 200,000 German holidaymakers are currently abroad, having flown out with Condor.
Photo: imago images/Rüdiger Wölk
"Condor has a future," declared Federal Minister for Economic Affairs Peter Altmaier on Tuesday evening in Berlin. Many of the company’s almost 5,000 jobs will be saved. And there are very good chances that tax-payers will get their money back, he added.
Prospects for the workforce
The Federal Ministry for Economic Affairs, the Federal Ministry of Finance, the Federal Ministry of Transport, the Federal Foreign Office, the Federal Ministry of Justice and the Federal Chancellery were involved in the decision to grant Condor Flugdienst GmbH support totalling 380 million euros.
On 20 September Condor Flugdienst GmbH requested support in the wake of the insolvency of the parent company, Thomas Cook.
EU must approve loan
The bridging loan is still subject to the approval of the EU. The German government is in talks with the European Commission in this regard. And the company must be extricated from the joint liability scheme of the Thomas Cook group.
The bridging loan will give the company a chance to keep operating and flying and also offers staff prospects of retaining their jobs. More than 200,000 German tourists are currently abroad, having flown out with Condor. The federal state of Hesse is to shoulder 50 per cent of the risk of the federal government.