On Monday 14 October, the European Commission authorised Germany's plan to grant a temporary loan of €380 million to the charter airline Condor.
Germany has notified the Commission of its intention to grant Condor a rescue loan of €380 million through the German public development bank KfW. This airline is experiencing a severe liquidity shortage after the liquidation of its parent company, the Thomas Cook Group. In addition, Condor has had to waive significant receivables, which it will no longer be able to collect.
Rescue aid may be granted for a maximum period of 6 months to allow a company in an emergency situation time to find solutions. In the present case, the Commission has taken into account the following elements: the instalments of the loan will be phased under strict conditions (Condor must provide proof of its liquidity needs on a weekly basis) and the instalments of a new tranche will be subject to the use of all existing liquidity. In addition, Germany has undertaken to ensure that after 6 months, either the loan will be fully repaid or Condor will carry out a complete restructuring in order to restore long-term viability. Any such restructuring will be subject to assessment and approval by the Commission. (Original version in French by Lionel Changeur)