Airlines PGL cancels plans to take over Condor
PGA Polish Aviation Group has announced, that it will withdraw its plans to rescue the struggling carrier Condor.
The withdrawal from the purchase of Condor was announced through Katarzyna Majchrzak, PGL Corporate Communications Office Director, in an interview with ISBnews. He confirmed, that PGL has informed Condor about the cancellation from the purchase of the company.
According to various aviation media, Condor was not able to satisfy the conditions of the investment agreement. The German leisure carrier was heavily struggling with its finances, even before COVID-19. This crisis has pushed the airline deeper into a precarious situation.
The time presses for Condor to find a plan B, as the airline has to pay an KfW-Loan in the amount of 380 million € with additional interest tomorrow on April 15. As possible saviour, Condor is hoping for the German government. The Federal Ministry of Economy maintained a low profile on Monday with not commenting on the situation. It is clear however, that the takeover by the government would not be the preferred solution.
An extension for the loan has not been applied yet, according to intern sources. The airline hoped for new credits in time of the Coronavirus crisis. Additional cash could come in the near future through an escrow account, where funds for Condor ticket ended up after April.
In January 2020, PGL, which is the owner of LOT Polish Airlines, announced that it would take over the German carrier. An investment agreement was concluded with Condor and this agreement saw certain conditions to be meet in order for the deal to happen.
Due to the decreased demand for air travel during the COVID-19 crisis, Condor had to park several aircraft on the ground. This means, the carrier is not gaining revenue from its flights. Only a handful Boeing 767 are still in operation to transport medical equipment between China and Germany.
Condor was founded back in 1956 and since then brings passengers to the most beautiful holiday destinations around the world. The fleet consists of more than 50 aircraft. Condor has operational bases at Frankfurt, Düsseldorf and Munich.
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