Condor Gets EU Approval for Aid, Plans Boeing 757 Retirement

Condor has secured European Commission approval for EUR321.2 million (USD364 million) in restructuring aid, confirming the financial support complies with EU state aid rules. The approval follows an earlier annulment by the EU General Court over concerns about insufficient debt burden sharing, prompting a deeper investigation.

The European Commission stated that Condor, backed by private investor Attestor, is implementing a comprehensive restructuring plan. Attestor and Condor are contributing over 70% of the total restructuring cost, ensuring substantial own investment and full burden-sharing. Previous shareholders lost their entire investment, removing moral hazard concerns and confirming Germany’s share in future financial upsides.

Ahead of the announcement, Condor executives reported positive results for the 2023-24 fiscal year. According to dpa, CEO Peter Gerber and CFO Björn Walther revealed a 15% year-on-year revenue increase to EUR2.4 billion (USD2.7 billion). Operating profit jumped from EUR52 million (USD59 million) to EUR113 million (USD128 million) in the first quarter of the current fiscal year.

Gerber also stated that majority owner Attestor, which holds 51% of Condor, has no immediate plans to exit. The remaining 49% is owned by Germany’s state-backed SG Luftfahrtgesellschaft.

Condor also confirmed plans to retire its Boeing 757-300 fleet, marking a full shift to Airbus aircraft. The airline currently operates eight Boeing 757-300s with an average age of 25.4 years. The rest of its fleet includes various Airbus types: A320s, A321s, and A330-900Ns, as it transitions to a modernized, unified Airbus fleet by the end of the IATA summer season.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com