LOT buys CONDOR
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Strange times. Good news for the staff but seen the major salary differences between Condor and LOT I wonder who will go up and who will go down in the long term .
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I would think the deadline to repay the bridging loan coming up will have played a big part in this. That loan needs repaying in full, and Condor would simply not be in a position to repay it on its own. It was always going to be a case of Condor being swallowed up by someone, the question was always who??
I must admit, I didn't see LOT coming in and snapping it up. Unless, around the rest of the European big boys, there was not a lot of appetite for them? I would have thought TUI would be stamping out competition in that part of the market in the first instance by taking Condor on.
I must admit, I didn't see LOT coming in and snapping it up. Unless, around the rest of the European big boys, there was not a lot of appetite for them? I would have thought TUI would be stamping out competition in that part of the market in the first instance by taking Condor on.
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Of all the bidders the LOT Group is probably the best. And it is good news that Condor continues flying. If the EU watchdogs give their blessing. I see problems from another direction.The magic word is " National Pride ". Being taken over by a Polish company will be hard to swallow for many people. I do have Polish roots ( three generations
back ) and know that people are still " reserved " when they hear or read my name. The Condor of these days reflects the heritage of being a German airline, since my
first journey on a Condor Viscount in 1962 to a most recent trip on a Boeing 757 nothing has changed, the appearance - in a positive sense - is purely Lufthansa. There will be difficult times ahead, and I wish the " new " Condor and its employees good luck.
back ) and know that people are still " reserved " when they hear or read my name. The Condor of these days reflects the heritage of being a German airline, since my
first journey on a Condor Viscount in 1962 to a most recent trip on a Boeing 757 nothing has changed, the appearance - in a positive sense - is purely Lufthansa. There will be difficult times ahead, and I wish the " new " Condor and its employees good luck.
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It's not a done deal yet; since LOT is part of the state-owned PGL, both Wizzair and Lufthansa have referred the deal to the European Commission. To be continued...
https://simpleflying.com/condor-lufthansa-cut-ties/
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Looks like the LOT buyout of Condor could be in danger of failing due to the current Corona situation according to German news today on the Spiegel.
PAG the parent company of LOT is in bad shape and says they could have bought Condor much cheaper.
Next negotation on buyout is tomorrow. The German Gvt. loan of 380€ mio. has to be paid back in April.
https://www.spiegel.de/wirtschaft/un...f-f7d80ab465c4
PAG the parent company of LOT is in bad shape and says they could have bought Condor much cheaper.
Next negotation on buyout is tomorrow. The German Gvt. loan of 380€ mio. has to be paid back in April.
https://www.spiegel.de/wirtschaft/un...f-f7d80ab465c4
Today the sale got formally approved by Condor's creditors. So they can leave their "Schutzschirmverfahren" (Chapter 11 style protection) as intended.
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Given the hit LOT is taking from cancellations and lack of demand, one does wonder if they will be able to cough up the cash to close the deal, even if it is approved by creditors.
It sounds like the whole deal might stall.
The Poles are said to have requested additional (full) german state guarantees for the takeover credit funding that the german government refused. While the deal had been reported to be inked already it might be in limbo now unfortunately. All the best to Condor's staff.
The Poles are said to have requested additional (full) german state guarantees for the takeover credit funding that the german government refused. While the deal had been reported to be inked already it might be in limbo now unfortunately. All the best to Condor's staff.
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PAG ( LOT ) will drop the Condor deal like a hot potato. They now have problems of their own and the German government will not compromise. In the present situation, with so many jobs in danger, no one cares about the fate of a holiday airline, there are far bigger problems to be dealt with. It is sad.
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PAG ( LOT ) will drop the Condor deal like a hot potato. They now have problems of their own and the German government will not compromise. In the present situation, with so many jobs in danger, no one cares about the fate of a holiday airline, there are far bigger problems to be dealt with. It is sad.
If at all only LH will receive state funding or a gvt stake in ownership.
Condor has had government support before. It looked like working to bridge the time and just keep them going.
The problem now even with more government money is to find some new investor at this time of chaos.
The problem now even with more government money is to find some new investor at this time of chaos.
Latest rumour: German government bank KfW will take over Condor making them a state owned carrier for some time. After some time a new sales process will be initiated. So they will not be state owned forever.
Looks to be more than rumour.
https://www.reuters.com/article/us-c...-idUSKBN21J5F9
BERLIN/MUNICH (Reuters) - The German government stands ready to take over Condor as a deal for the airline to be bought by Polish rival LOT is likely to collapse in the industry turmoil caused by the coronavirus crisis, several people familiar with the matter told Reuters.
LOT agreed in January to buy Condor for about 300 million euros ($328 million) to create a leading European aviation group with more than 20 million passengers a year.
But with planes unable to fly because of travel restrictions, compounded by a plunge in demand over fears of contagion, airlines worldwide have grounded most of their fleets, and many have said they need government support to survive.
Last week, airlines urged governments to speed up bailouts to rescue the air transport industry, as they doubled their estimate of 2020 revenue losses from the health crisis to more than $250 billion.
LOT owner PGL has made completion of its takeover deal contingent on certain financial guarantees that the German government considers unacceptable, the sources said, adding no final decision on Condor’s immediate future had been taken.
“LOT has some issues with the deal financing”, one of the people said, while another said a government decision could come as early as this week.
Condor said it was in talks with all parties involved and no decision had been made yet, declining to comment further. PGL and the German economy ministry declined to comment.
Nationalising Condor would only be for a limited time as Germany aims to restart a sales process as soon as the stranglehold on the travel industry from the coronavirus pandemic has eased, the sources said.
Condor is a former unit of Thomas Cook, the holiday company that collapsed in September. A 380 million euro ($415 million) state bridging loan allowed the carrier to be rescued.
Last week, Condor applied for an additional 200 million euros in state aid in the wake of the coronavirus outbreak, according to people familiar with the matter.
Additional reporting by Arno Schuetze, Christian Kraemer und Anna Koper; Writing by Ludwig Burger; Editing by Mark Potter
https://www.reuters.com/article/us-c...-idUSKBN21J5F9
BERLIN/MUNICH (Reuters) - The German government stands ready to take over Condor as a deal for the airline to be bought by Polish rival LOT is likely to collapse in the industry turmoil caused by the coronavirus crisis, several people familiar with the matter told Reuters.
LOT agreed in January to buy Condor for about 300 million euros ($328 million) to create a leading European aviation group with more than 20 million passengers a year.
But with planes unable to fly because of travel restrictions, compounded by a plunge in demand over fears of contagion, airlines worldwide have grounded most of their fleets, and many have said they need government support to survive.
Last week, airlines urged governments to speed up bailouts to rescue the air transport industry, as they doubled their estimate of 2020 revenue losses from the health crisis to more than $250 billion.
LOT owner PGL has made completion of its takeover deal contingent on certain financial guarantees that the German government considers unacceptable, the sources said, adding no final decision on Condor’s immediate future had been taken.
“LOT has some issues with the deal financing”, one of the people said, while another said a government decision could come as early as this week.
Condor said it was in talks with all parties involved and no decision had been made yet, declining to comment further. PGL and the German economy ministry declined to comment.
Nationalising Condor would only be for a limited time as Germany aims to restart a sales process as soon as the stranglehold on the travel industry from the coronavirus pandemic has eased, the sources said.
Condor is a former unit of Thomas Cook, the holiday company that collapsed in September. A 380 million euro ($415 million) state bridging loan allowed the carrier to be rescued.
Last week, Condor applied for an additional 200 million euros in state aid in the wake of the coronavirus outbreak, according to people familiar with the matter.
Additional reporting by Arno Schuetze, Christian Kraemer und Anna Koper; Writing by Ludwig Burger; Editing by Mark Potter