Status: 07/27/2021 3:46 p.m.
The vacation airline Condor has received half a billion state aid – and rightly so, according to the EU Commission. The Brussels authority had to make improvements after rival Ryanair had previously sued.
The vacation airline Condor, which got into financial turmoil due to the corona crisis, has again received the green light from Brussels for state aid of half a billion euros. The EU Commission today approved aid of around 525 million euros.
Germany supported Condor with loans of around 550 million euros last year. On the other hand, the Irish low-cost airline Ryanair sued – and received from the European Court of First Instance (EGC) Law. The court in Luxembourg banned the aid on the grounds that the EU Commission had only inadequately declared its release. The commission has now made improvements. You have taken the judgment into account and based on the actual damage, said the EU authority. The company would have to repay any aid that went beyond this with interest.
The aid is intended to cushion the consequences of the travel restrictions in the pandemic and enable the airline to be restructured. The airlines have been hit particularly hard by the Corona requirements, said Competition Commissioner Margrethe Vestager. The restructuring plan enables Condor to survive in the long term.
Compatible with European law
In fact, a large part of global air traffic collapsed last year. Many airlines needed acute help. That’s why the federal government got involved with Lufthansa.
The EU Commission stated that public aid is permitted under EU law in the event of extraordinary events with significant economic effects on companies. The corona pandemic is such an event. Therefore, the EU countries are likely to help affected companies like Condor with aid. The German aid for the restructuring of the airline is also legal and does not distort competition.
New investor
Condor had already got into trouble before the pandemic due to the bankruptcy of the parent company Thomas Cook in autumn 2019. At that time, the airline could only continue to work with rescue aid of 380 million euros. The initiated insolvency proceedings had to be extended after the outbreak of the Corona crisis because the new owner, the Polish aviation company PGL, had jumped off.
In the meantime, Condor is doing better again. In May, the company found a new owner in the British investor Attestor. The 4000 jobs are to be retained. Condor is counting on the demand for travel to pick up again. “I’ve always been more optimistic than many that demand will come back faster than we think,” said Condor boss Ralf Teckentrup at the beginning of July.