German airline Condor to receive loans worth 550 million euros

The German government and the federal state of Hesse have agreed to provide Condor with loans worth 550 million euros ($596.31 million), the economy minister said on Monday, after the owner of Poland’s LOT pulled out of a deal to buy the airline.

“The company was operationally healthy and profitable in normal times and has good prospects,” Peter Altmaier said in a statement.

Condor said in a separate statement that it would receive a loan of 294 million euros as coronavirus aid and an additional 256 million euros to completely refinance a bridging loan it received after the collapse of parent company Thomas Cook.

With planes unable to fly because of travel restrictions, Condor grounded its fleet and called for state aid.