State aid: Commission approves €380 million German rescue aid to Condor


(Ross Parmly, Unsplash)

This article is brought to you in association with the European Commission.

The European Commission has approved, under EU State aid rules, Germany’s plans to grant a temporary €380 million loan to charter airline Condor. The measure will contribute to ensuring the orderly continuation of air transport services and avoid disruptions for passengers, without unduly distorting competition in the Single Market.

On 25 September 2019, Germany notified the Commission of its intention to grant, via the German public development bank KfW, a €380 million rescue loan to Condor. The airline faces an acute liquidity shortage following the entry into liquidation of its parent company, the Thomas Cook Group. Furthermore, Condor had to write off significant claims against other Thomas Cook Group companies, which Condor will no longer be able to collect.

The Commission’s Guidelines on rescue and restructuring aid allow Member States to support companies in difficulties, provided, in particular, that the public support measures are limited in time and scope and contribute to an objective of common interest. Rescue aid can be granted for maximum six months to give a company time to work out solutions in an emergency situation.

In the present case, the Commission has taken the following elements into account:

  •  the loan will be paid out in instalments under stringent conditions. In particular, Condor has to demonstrate its liquidity needs on a weekly basis and new instalments will only be paid when all existing liquidity has been used; and
  •  Germany committed to ensure that, after six months, the loan will either be fully repaid, or Condor will carry out a comprehensive restructuring in order to return to viability in the long-term. Such possible restructuring would be subject to the Commission’s assessment and approval.

The Commission found that the measure will help ensure the orderly continuation of flight services, in the interest of air passengers. At the same time, the strict conditions attached to the loan and its duration limited to six months will reduce the distortion of competition potentially triggered by the State support to a minimum.

The Commission therefore concluded that the measure is compatible with EU State aid rules.

The non-confidential version of the decision will be made available under the case number SA.55394 in the State Aid Register on the competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.










the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Your morning cup of coffee contains 140 litres of water

This Japanese company pays its employees to get a good night’s sleep

Rural women a ‘powerful force’ for global climate action: UN Secretary-General

‘Tenacious’ Kyrgyz lawyer and statelessness champion, wins prestigious UNHCR prize

Large parts of the world are growing more fragile. Here are 5 steps to reverse course

Nearly four million North Koreans in urgent need, as food production slumps by almost 10 per cent

Draghi tells the Parliament the ECB to use all its weaponry; euro slides to parity with the dollar

Road to Brexit: the UK seeks early agreement on Data Privacy with the EU

Scientists in Iceland are turning carbon dioxide into rock

Financing the 2030 Agenda: What is it and why is it important?

European Border and Coast Guard: Council adopts revised regulation

Myanmar: Conflict resolution at ‘total standstill’, military commanders must answer for crimes against humanity

G20 LIVE: G20 leaders reaffirm OECD’s role in ensuring strong, sustainable and inclusive growth

16 foods that are good for you – and the planet

Facebook has built an AI-based tool that fixes the social network when it crashes

Mali just took a huge step towards universal healthcare

UNICEF appeals for end to ‘war on children’ in Syria and Yemen

The EU Commission predicts a decimated growth in the next years

EU regional differences betray an unjust arrangement

Containers at the port of Tokyo. (Copyright: European Union, 2016. Source: EC - Audiovisual Service. Photo: Haruyoshi Yamaguchi)

EU cuts fast-track free trade deals with Japan and Singapore and leads the trade scene

FROM THE FIELD: Enduring freezing winter in a war zone

It’s a week dedicated to all EU budgets; seven days that can make or break the Union

Fighting for minds of youth in Latvia

Guterres censures terrorist attacks in Nigeria, pledges UN ‘solidarity’

‘Disaster resilient’ farming reduces agriculture risks, yields economic gains, says new UN agriculture agency report

UN rights chief ‘appalled’ by US border detention conditions, says holding migrant children may violate international law

An alternative view of Globalization 4.0, and how to get there

Malta: Human rights experts call for justice in case of murdered journalist

Meet Cipta: the comic book hero using her powers to tackle bullying in schools

This is what a Green New Deal for Europe could look like

Appreciation of euro to continue

How much more political is the new EU leadership? Does this include personal bend?

Facebook and Google to treat Europe as the 51st State of the USA

UN food agency appeals for access to key storage facility amid fight for Hudaydah

New round of bargaining for the 2014 EU budget late in autumn

More women and girls needed in the sciences to solve world’s biggest challenges

UN’s Bachelet rejects Sri Lankan official’s ‘spin’ on Human Rights Council encounter, urges reforms

Venezuelan exodus to Ecuador reaches record levels: UN refugee agency steps up aid

Nicaragua must end ‘witch-hunt’ against dissenting voices – UN human rights experts

EU economic governance: More exploitation for the weaker countries

Top UN Syria envoy hails ‘impressive’ start to historic talks in Geneva

EU Commission says falling labour remuneration leads to deflation and damages growth prospects

What happens when you toss your water bottle in the trash?

Parliament commemorates the victims of the Holocaust

UN rights chief slams ‘unconscionable’ US border policy of separating migrant children from parents

These are India’s cleanest cities

Halting spread of drug resistance from animals to humans: deal with Council

The banks dragged Eurozone down to fiscal abyss

Brain Drain: Follow your dreams, wherever they might take you

Vulnerable children face ‘dire and dangerous’ situation on Greek island reception centres, UNICEF warns

UN chief highlights action across borders for ‘stable and prosperous Eurasia’

EU Telecoms deal: Fees on calls across the EU capped and 5G network by 2020

They won this year’s Nobel for economics. Here’s why their work matters

EU consumer rules: Airbnb cooperates with European Commission and EU consumer authorities improving the way it presents offers

Who and why want the EU-US trade agreement here and now

How trade wars pose a threat to the global economy

Foreign Affairs Council (Trade) of 22/05/2018: EU relations with key trading partners

MEPs approve boost to workers’ rights in the gig economy

This city is planting a tree for every man, woman and child

State of the Union 2017: Juncker’s optimism about EU growth and Brexit’s impact

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s