The owner of LOT Polish Airlines, Polish Aviation Group (PGL) has agreed to purchase former Thomas Cook Group subsidiary Condor. The German leisure airline, Condor, said on January 24, 2020, that the deal with PGL secures their future in the long term.
Condor chief executive Ralf Teckentrup stated:
‘We are pleased that Condor, Germany’s most popular leisure airline, has gained in the PGL and LOT stable, experienced and dynamically developing partners who secure the future of our business’
Condor Boeing 767. Image Credits: Airliners.net
As per reports, the Condor brand alongside its management team shall be retained. Condor will supposedly become the centre of PGL’s leisure strategy with a focus on growth in Germany as well as adjacent markets. This deal profits Condor as much it does PGL – a bridging loan of €380 million ($419 million) provided by German state bank KfW, which was needed because Condor faced an acute liquidity shortage after Thomas Cook’s collapse shall be repaid as part of the agreement by April 15, 2020, thereby, leaving Condor debt-free. The European Commission, in October 2019, did green-light the rescue loan, reasoning the measure would ensure the orderly continuation of flights, however, Condor needed to demonstrate its liquidity needs on a weekly basis.
PGL’s purchase of Condor is expected to close by April 2020 once customary antitrust approvals are obtained and Condor exits the protective shield proceedings.
LOT Polish Airlines Boeing 787-8. Image Credits: Business Traveller
PGL president and LOT CEO Rafał Milczarski said:
‘The acquisition of Condor fits perfectly into PGL’s strategy. It also secures the future of Condor and offers stability and great opportunities to its employees, customers and business partners’
Condor and LOT together are now speculated to serve twice as many passengers, thus forming one of the largest aviation groups. In 2019 alone, LOT Polish Airways carried about 10 million passengers while Condor carried around 9.5 million passengers around 90 destinations in Europe, Africa, and America. As the two giants will be teaming up, it would be interesting to observe how both airlines now flourish with the added benefits!