The Federal Government today decided to grant a KfW loan worth €380 million ¬- which is guaranteed 100% by the Federal Government - to the German airline Condor Flugdienst GmbH based in Hesse. The loan takes the form of a Massekredit, i.e. a special loan similar to debtor-in-possession financing.
Condor Flugdienst GmbH had applied to the Federal Government for a bridging loan after its parent company Thomas Cook Group plc, based in London, faced acute financial difficulties.
The decision to grant the loan was jointly made by the Federal Ministry for Economic Affairs and Energy, the Federal Ministry of Finance, the Federal Ministry of Transport and Digital Infrastructure, the Foreign Office, the Federal Ministry of Justice and Consumer Protection and the Federal Chancellery. The bridging loan is still subject to authorisation in accordance with state aid rules. The Federal Government is currently holding constructive talks with the European Commission in this regard. In addition, the company will have to be removed from the parent company’s joint liability scheme.
The bridging loan will give the company the opportunity to continue its business operations and flight service, and also gives the almost 5,000 employees a prospect for the future. There are currently 240,000 travellers from Germany at their holiday resorts who are booked on Condor flights.