Already outdated and not the case anymore: Big news for Condor: Investor found!

Real World Aviation
#1

Condor, one of the most important leisure airlines in Germany and a former Thomas Cook Group airline, has managed to find a new investor.

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Current Update: Lufthansa will not renew its contracts with Condor, cutting Condor’s ability to use LH flights to feed it’s long-haul services once the contracts are expired.

After the bankruptcy of Thomas Cook, Condor has managed to survive so far by entering a “Schutzschirmverfahren”, which protected the airline from the liabilities of Thomas Cook. Also the German state together with the federal state Hessen have granted (together with the bank KfW) a big credit of 380 million Euro to Condor to ensure it’s survival.

Today it was announced, that the Polish Aviation Group (PGL) will take over Condor as it’s new investor.

The PGL is the owner of the Polish airline LOT and some other aviation related companies in Poland.

What does this mean for Condor?
Currently it seems that no further job losses will take place at Condor as PGL has big (expansion) plans for Condor and a growth strategy not only in Germany but also in Poland and Hungary. Condor is set to become the core leisure carrier of PGL. This seems to see the airline becoming more than a German airline now under Polish ownership.

Furthermore PGL has said that 20 new aircraft will be ordered for Condor.
Also Condor officials said that the credit by the KfW will be completely paid back on schedule, which will please the German tax payers after some feared that no repayment would ever happen (but even Air Berlin was able to repay most of its credit by now).

Condor’s current partnership with Lufthansa regarding connecting flights (especially to long haul services) will continue as the partnership is valued by both airlines according to Condor’s CEO. Also the CEO of PGL said that relations between LOT and LH are fine as well.
Update on the Condor and Lufthansa relation:

For Condor customers and employees this means that there will be more stability and a better feeling when it comes to the future!

Personal opinion:

I am very happy that Condor seems to be saved for now. I would be (once again) very confident to book a Condor flight.
Nonetheless I am unsure wether an expansion towards Eastern Europe really is the right thing for this German carrier with a long history.

I would really be interested in your opinion on this development!
Sources (in German, I would appreciate any links to English sources in the comments!):



English article:

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Lufthansa will not renew its contracts with Condor following a recent change in leadership at Condor
Back to the beginning: Condor saved - Season 2
#2

Will be interesting to see if Condor begins a partnership with Lufthansa given LOT’s in Star Alliance and codeshares with LH.

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#3

Condor’s current partnership wit Lufthansa regarding connecting flights (especially to long haul services) will continue as the partnership is valued by both airlines according to Condor’s CEO. Also the CEO of PGL said that relations between LOT and LH are fine as well.

Very good question, thanks for that!

#4

Glad to see that they can hopefully survive!

Hold up, how do you pronounce this? 😂

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#5

Schutz-schirm-verfahren.

Three words and you basically pronounce it just the way it’s written ;)

Translation:

Protection-umbrella-process

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#6

Found an English article:

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#7

Thank you!

#8

Anytime:) Sir 🖐

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#9

Big news! Definitely a good thing when an airline is saved.

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#10

Absolutely is! Great news for German customers (including myself) as we won’t get a quasi monopoly on the tourism market (with a third major player apart from LH Group and TUI).

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#11

LOT’s reaction on Facebook is absolutely great in my opinion:

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#12

Very good to see!

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#13

Absolutely is!

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#14

Dissapointed. I was hoping for comeback to LH Group.

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#15

I am really not sure wether that would have been good. As a customer I currently have the choice between Eurowings/LH, TUI and Condor. More often than not on direct flights from German airports even only between Condor and TUI.

For prices and competition a Integration of Condor into the LH Group wohnt have been the best in my opinion.

Also I am pretty sure that the German Kartellbehörden, which check mergers regarding monopolies and so on wouldn’t have tolerated such a merger without applying some additional rules and regulations on the LH Group.

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#16

Thank you LOT for saving my favorite airline! 💛

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#17

#ThanksaLOT, right?

Hashtag not invented by me, saw that one on Twitter.

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#18

Aviation and puns, two of my favorite things!

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#19

Lufthansa reportedly wants to end ties with Condor

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#20

Thank you (@Ishrion) very much for making me aware!

If true this would be huge news.

LH might end offering flight connections to Condor flights, which would especially hit Condor’s long haul business, as passengers from German/European cities apart from Munich and Frankfurt would have problems getting to the Condor flights opposed to getting to LH Group flights.

Also a forced Exit of Condor from the Miles and More programme seems to be a possibility.

Furthermore LH might start a start a proceedings against Condor/PGL with the European Commission, concerning financial aid provided to LOT/PGL by the Polish government.

If you can speak German the article above is well worth a read!