ANNOUNCEMENT 26 Apr 2020
In April 2020, the European Commission approved a state-guaranteed loan to German Condor following the COVID-19 outbreak.
NUMBER OF INTERVENTIONS
European Commission, press release of 27 April 2020, State aid: Commission approves €550 million German State-guaranteed loan to compensate airline Condor for damage caused by coronavirus outbreak: https://ec.europa.eu/commission/presscorner/detail/en/IP_20_752
SA.56867 COVID 19 – Support for Condor: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_56867
On 26 April 2020, the EU Commission approved a EUR 550 million (approx. USD 595.4 million) state-guaranteed loan to the German charter airline Condor.
Germany clarified that the state aid was in part to compensate the damages experienced by the company of cancelled and rescheduled flights due to the outbreak of COVID-19.
In this context, Margrethe Vestager the Executive Vice-President, in charge of competition policy, stated in a press release: "This State-guaranteed €550 million loan will allow Germany to compensate Condor, operating in the particularly hard hit aviation sector, for part of the damage suffered due to the coronavirus outbreak. We cooperate with Member States to find workable solutions to support companies in these difficult times, in line with EU rules."
The financial support is granted to the company from 27 April 2020.
The state aid is approved under the Temporary Framework under the State Aid and its amendment of 2 April 2020. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March, see related state act.
Notably, German already approved a number of financial support measures in September 2020 following the liquidation of its parent company, the Thomas Cook Group, see related state act.