The German government is about to nationalize the airline Condor
The German government is ready to nationalize Condor, according Reuters. The agreement concluded with the Polish carrier LOT, which wished to takes over Condor for the amount of EUR 300 million, is about to collapse in the turbulence caused by the coronavirus crisis.
LOT agreed in January to buy Condor for about 300 million euros (328 million dollars). It wanted a European aviation group with over 20 million passengers a year.
Germany nationalizes Condor
But with airplanes being detained on the ground due to travel restrictions, plus declining demand, the LOT is required to seek government support to survive.
Polish Aviation Group (PGL), the owner of LOT Polish Airlines, has requested some financial guarantees that the German government considers unacceptable. At this time, there is no final decision on this transaction, but sources from inside say there is a good chance that the German authorities will nationalize Condor.
Condor nationalization will be for a short period of time. The plan is that, after the pandemic passes, the German authorities begin a privatization process for Condor.
Condor is a former subsidiary Thomas Cook (charter airline, which went bankrupt). A government loan of 380 million euros ($ 415 million) allowed the German subsidiary to be saved. Last week, Condor requested 200 million euros in state aid to survive in times of crisis.