Commission approves EUR 321.2 million German restructuring aid to Condor following General Court ruling
The European Commission has again greenlighted restructuring aid of EUR 321.2 million granted by Germany to Condor to support its return to viability. This approval (SA.63203). follows the annulment by the General Court on 8 May 2024, in case T-28/22 Ryanair v Commission (“Condor Restructuring Aid”), of the Commission’s original approval decision.
Condor, a German charter airline specialising in leisure travel, entered insolvency proceedings in September 2019 following the collapse of its parent company, Thomas Cook Group. During the period 2019–2021, Condor benefited from several State aid measures, including rescue aid approved by the Commission in October 2019 (SA.55394), which was upheld by the General Court in May 2022 (T-577/20 Ryanair v Commission (“Condor Rescue Aid”)). Condor also received two COVID-19 damage compensation measures, one of which was initially annulled by the General Court in June 2021 (T-665/20 Ryanair v Commission), before being subsequently re-approved by the Commission (SA.56867).
In response to Condor’s insolvency, Germany extended support through a restructuring plan, which included a EUR 90 million debt write-off from a public loan guaranteed by the state, restructured repayment terms on the remaining portion of that loan used for restructuring costs, and a EUR 20.2 million interest write-off.
After reopening an investigation in July 2024, the Commission reassessed the aid under the EU Guidelines on State aid for rescue and restructuring. It concluded that Condor has put in place a credible long-term restructuring strategy and that its new private investor, Attestor, along with Condor itself, are covering over 70% of the restructuring costs. Importantly, former shareholders lost their entire investments, fulfilling the requirement of adequate burden-sharing.
The Commission also found that Germany is receiving a sufficient share in potential future benefits of Condor’s recovery, and that safeguards are in place to minimize market distortions and prevent moral hazard. Based on these findings, the Commission ruled that the aid complies with EU State aid rules.
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