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