Condor leaves financial protection as a ‘healthy’ airline
After more than a year of uncertainty, government bailout funding and a canceled Polish takeover, German leisure operator Condor has finally emerged from financial protection proceedings. Its administrator affirms that the carrier is now in “pole position” for the resumption of tourism.
On December 1, German leisure haulier Condor announced that it had successfully exited the “protective shield procedure” and is now considered a healthy business. Around 4,200 jobs are now saved until at least December 2021.
This concludes a restructuring process lasting more than 13 months following the liquidation of the parent company of Condor, charter specialist Thomas Cook, in September 2019.
Stay informed: Subscribe to our daily summary of aviation news.
14 intense months
The year was marked by substantial cost reduction and efficiency measures, government loans and collective agreements with unions. In addition, he held a potential purchase by the owners of Polish flag carrier LOT, PGL, which failed in April. Given the circumstances, PGL was apparently unwilling to part with the 300 million euros ($ 359 million) it would have cost them to take over Condor.
However, it looks like the transporter will survive even without its potential rescuer. Professor Lucas Flöther, the Administrator of the Condor’s Protective Shield Procedure, said the following in a statement seen by Simple Flying,
“Following the successful restructuring, Condor is now much lighter and more efficient. The airline is in pole position as soon as tourism resumes. Condor is thus the first company in this industry to have undergone a protective shielding procedure with such success. All parties involved did everything possible to save the business. The whole process was first class teamwork.
Worth it for a new chapter in airline history
Ralf Teckentrup, CEO of Condor, said the company is now leaving behind the most difficult period in its history. (Hopefully more airlines will be able to say the same soon.) He further said that this was the start of a “new chapter” and that customers and partners could continue to rely on the airline company.
“I want to thank all of our supporters and companions, politicians and partners who have continued to trust us over the past 14 months. And also the Condorians deserve our greatest thanks and appreciation for their perseverance and commitment. It was worth it: today our future as a healthy company begins ”, Mr. Reckenrup said in a statement.
Since the United States is an important market for Condor, the carrier has also filed a Chapter 15 petition under the United States Bankruptcy Code. This will ensure that the provisions of the German restructuring procedure are recognized and binding on the other side of the Atlantic as well as in the domestic market.
Optimistic summer outlook
While Condor serves the vast majority of its destinations from Germany, it has decided to park two A320s in Zurich for the summer of 2021. According to Aviation Week Network, the airline plans to operate at 75% of its capacity. pre-crisis for the season, pending an infrastructure of vaccines and rapid tests.
Traveling on vacation with Condor? Let us know your experiences in the comments.