The German holiday airline is preparing for the future with Lot mother PGL. Condor is already planning an expansion for the coming winter.
The German Federal Cartel Office has given the green light these days. Now the competition authorities in Cyprus, Spain and Turkey have to approve the purchase. By April it will be ready, Condor boss Ralf Teckentrup expects. Then the takeover of the German leisure airline by PGL Polska Grupa Lotnicza is perfect.
Teckentrup emphasized on Thursday (February 20) in front of journalists in Frankfurt that one should not start planning jointly with the parent company of the Polish national airline Lot. “As long as the approval of the cartel offices is not yet available, we are still competitors,” said the manager. “You have to stick to the competition rules when it comes to the exchange of information.” Therefore, there was no further meeting with PGL, only e-mails were written to each other and telephoned with one another, says Teckentrup.
From the end of March without a protective screen
Since the insolvency of the then parent company Thomas Cook in September 2019, Condor has been in a special preliminary insolvency procedure, the so-called protective shield procedure. It protects the company from claims on the ex-owner. In mid-March, various groups of creditors had to vote for or against the quotas with which their claims are met – that is, how much money they get.
One of these groups is the Pension Insurance Association PSV. And according to a report by Wirtschaftswoche magazine, he is considering rejecting Condor’s plan. Airline boss Teckentrup does not want to go into this in detail, but is unconcerned. He said that only four of the seven groups of creditors needed the approval to implement the protective plan and end the process at the end of March.
Loan repayment takes precedence
Most creditors have to prepare for very low quota payments. In contrast, the state-guaranteed loan of EUR 380 million that Condor received is a so-called mass liability. It precedes other demands and is paid in full. The airline plans to repay the loan in April as well as to complete the takeover by PGL.
Meanwhile, Teckentrup was very satisfied with the business in the current winter flight schedule. “We have a seat load factor of more than 90 percent,” said the Condor boss. “We owe the fact that things are going so well to the organizers.”
Business in Berlin is going better
In the coming summer, Condor will again offer connections by plane from Berlin-Schönefeld, for example towards the Canary Islands and Sardinia. Teckentrup said that the ex-parent company Thomas Cook was not strong in the capital. That works much better with other tour operator customers, with whom you now work more.
Cooperation with Lot is also planned from May, but according to Teckentrup, this has nothing to do with the takeover. Condor will use Embraer jets from Poland with 118 seats each at the weekends in Hanover and Stuttgart. Lot uses the planes during the week on scheduled flights with many business travelers.
Asia destinations from Munich?
For winter 2020/21, Condor plans double-digit percentage growth in capacity. Then three additional short- and medium-haul jets are to be used, which were not planned in the current winter due to maintenance work.
With Punta Cana, Cancun and Varadero, Condor has already announced three long-haul destinations from Munich for 2020/21. Teckentrup said that they also have ideas for destinations in Asia, but there is still nothing to say. The airline is currently flying from the Bavarian capital to the long-haul destinations of Punta Cana, Cancun, Havana and Mauritius.
Düsseldorf attractive market
Teckentrup was not clear about reports that Condor was planning to compete with Tuifly in Düsseldorf on the long haul. However, he said that the region of the state capital of North Rhine-Westphalia was an attractive market. “It is therefore normal that we will also deal with it.”
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