Fear of cash squeeze
Condor is seeking government aid
The German leisure carrier of the Thomas Cook Group is still operating. But it faces gigantic challenges. Condor is seeking help from the government.
Planes of Condor at Frankfurt Airport.
Planes of Condor at Frankfurt Airport.
On Sunday evening, a reassuring message came out of Frankfurt: Condor will continue flying. All flights would take place as planned, the German airline said in a statement. Meanwhile, the insolvency of its parent company Thomas Cook Group was being prepared in London. Later that night, the 178-year-old group officially announced that it had filed for liquidation.
British Thomas Cook Airlines also stopped operations. Condor CEO Ralf Teckentrup, on the other hand, stated: «We will continue to concentrate on what we do best: To fly our guests punctually and safely to their holiday destination». The airline, he said, is profitable and transported eight million passengers last year.
Problems not solved
Nevertheless, Condor’s problems are by no means solved. There are numerous connections, both operational and structural, between the German leisure carrier and its British sister company Thomas Cook Airlines. In addition, with the declaration of the liquidation of the Thomas Cook Group, the flow of money from the headquarters in London was interrupted.
In addition, an important source of revenue threatens to break away. The German tour operators of Thomas Cook are also in acute danger. They stated they are operating under «emergency business management» now and stopped selling holiday packages. According to the company, it is currently sounding out «last options». «Should these not materialize, management will be forced to file for insolvency for Thomas Cook Germany, Thomas Cook Touristik, Bucher Reisen and Öger Tours and possibly other companies as well.»
Like Air Berlin
Condor therefore had no choice but to apply for a government-backed bridging loan this weekend. The airline announced on Monday morning (September 23) that the aim was to «prevent a cash crunch». The request is currently being examined by the German government in berlin.
Before the end of Air Berlin, the German government granted the airline an emergency loan of 150 million euros. This prevented an immediate end of operations and a reasonably orderly sale. The money has since been repaid by the insolvency administrator.