Condor Leaves Financial Protection As A ‘Healthy’ Airline

After more than a year of uncertainty, government rescue financing, and a scrapped Polish take-over, today German leisure operator Condor has finally come out of financial protection proceedings. Its administrator says that the carrier is now in “pole position” for when tourism starts back up again.

Condor exits proceedings healthy company
German leisure carrier Condor has announced its exit from protection proceedings. Photo: Getty Images

On December 1st, German leisure carrier Condor announced that it has successfully exited “protective shield proceedings” and is now considered a healthy company. Approximately 4,200 jobs are now safeguarded until at least December 2021.

This concludes an over 13-month long restructuring process following the liquidation of Condor’s parent company, charter specialist Thomas Cook, in September 2019.

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An intense 14 months

The year has seen substantial cost-cutting and efficiency measures, government loans, and collective agreements with trade unions. Furthermore, it held a potential purchase by Polish flag-carrier LOT’s owners PGL, which fell through in April. PGL was apparently, given the circumstances, unwilling to part with the €300 million ($359 million) it would have cost them to take over Condor.

However, it seems the carrier will survive even without its would-be rescuer. Professor Dr. Lucas Flöther, the administrator of Condor’s protective shield proceedings, had the following to say in a statement seen by Simple Flying,

“Following the successful restructuring, Condor is now much leaner and more efficient. The airline is in pole position as soon as tourism starts up again. Condor is thus the first company in this industry to have undergone a protective shielding proceeding so successfully. All parties involved have done everything possible to save the company. The whole process was first-class teamwork.”

Condor Leaves Financial Protection As A ‘Healthy’ Airline
According to administrators, Condor is in pole position for a restart in tourism. Photo: Getty Images

Worth it for a new chapter in the airline’s history

Ralf Teckentrup, CEO of Condor, said that the company was now leaving behind the most challenging time in its history. (Let us hope more airlines will soon be able to say the same.) He further stated that this was the start of a “new chapter” and that customers and partners could continue to rely on the airline.

“I would like to thank all our supporters and companions, politics and our partners who continued to place their trust in us over the past 14 months. And also the Condorians deserve our greatest thanks and recognition for their perseverance and commitment. It was worth it: Today our future as a healthy company begins,” Mr Reckentrup said in a statement.

Condor a healthy company
Condor has also filed for Chapter 15 protection in the United States. Photo: Düsseldorf Airport

As the United States is an important market for Condor, the carrier has also filed a petition under US bankruptcy code Chapter 15. This will make sure that the provisions of the German restructuring proceedings are recognized and binding across the Atlantic as well as in the airline’s home market.

Optimistic summer outlook

While Condor serves the clear majority of its destinations from Germany, it has decided to station two A320s in Zurich for summer 2021. According to Aviation Week Network, the airline is expecting to operate at 75% of its pre-crisis capacity for the season, pending a vaccine and rapid test infrastructure.

Do you fly on vacation with Condor? Let us know your experiences in the comments.