Condor Airline Gets EU Approval for Bridging Loan
European Union competition regulators have given the go-ahead for a German loan to former Thomas Cook airline Condor.
The ruling said the Commission had decided not to raise any objections to the finance.
Condor was part of the failed UK travel group Thomas Cook that entered liquidation proceedings last month. The leisure airline applied for bridging finance the following day to stay afloat during the quieter winter travel season.
The airline received guarantees from the German federal government and the state of Hesse for a six-month bridging loan of EUR€380 million (USD$419 million). Approval by the European Commission was a requirement for the loan.
Condor chairman Ralf Teckentrup said: “We are extremely grateful to the European Commission for its quick and positive decision. The bridging loan is an important step towards safeguarding Condor's future.
“A healthy Condor is also clearly in the interest of a functioning market, because we are not only a major competitor in the tourism segment, but also important for the competitive structure in aviation in Germany and Europe.”
The airline said the funds will be paid out in stages by administrator KfW.