Condor was only saved by the German state last year
Around three months after the protective shield proceedings were concluded, the German vacation airline Condor, which was rescued by the state, needs fresh money again. With reference to the extended coronavirus lockdown and the hesitant demand for flights, the company confirmed on Monday in Frankfurt that it was conducting “constructive exploratory talks” about financial support. It remained unclear whether renewed state aid would also be discussed. The “Handelsblatt” had previously reported.
Condor had averted the impending bankruptcy last year and left the protective shield proceedings on December 1, 2020, in which it was comprehensively restructured. The former subsidiary of the lost travel company Thomas Cook is held in the air by a trust company with a long-term loan from the state-owned KfW bank.
Of the 550 million euros committed in April 2020, 256 million were used to replace a previously existing short-term KfW loan. The protective shield proceedings under administrator Lucas Flöther are said to have cost around 44 million euros, so that in the end around 250 million euros remained for the Condor as corona aid. At a later point in time, an investor should be sought, which could now be preferred.
With a fleet of around 50 aircraft, the company is struggling to resume tourist flights and last year had assumed that Easter business would be brisk, which will now fail. The airline is arguing with the Lufthansa Group over feeder flights to its long-distance flights, the contractual terms of which Lufthansa terminated in November. The crane group, which is also state-supported, wants to push the long-haul tourism business itself.
The company was restructured under the protective umbrella and trimmed to lower costs. The number of employees fell by around 700 to 4,200. For the remainder, collective bargaining agreements were concluded with the trade unions, with financial losses for the employees. The company has relocated its headquarters from Frankfurt Airport to a more affordable property in nearby Neu-Isenburg.
