The collapse of parent company Thomas Cook has not affected Condor…at least not yet. What will happen to another storied company that now faces uncharted waters?
While all Thomas Cook flights have been suspended, Condor flights continue to operate as normal. Condor employees 4,500 people in Germany and is profitable. Ralf Teckentrup, CEO of Condor, said:
We will continue to concentrate on what we do best: flying our customers to their holidays safely and on time.
A scrolling banner on the Condor website assures travelers that flights are operating on schedule.
But hoping to ensure stability and maintain liquidity, Condor has requested a bridge loan from the German government to ensure uninterrupted operations. The precise amount requested has not been disclosed.
An Opening For Lufthansa?
Lufthansa has little interest in Condor itself. The Condor fleet is older than Lufthansa’s and many of the destinations served are also served by Lufthansa. But just like with Air Berlin, Lufthansa does want Condor’s slots, if for nothing else than to keep competition out.
Earlier this year, Lufthansa bid for Condor, though Thomas Cook opted not to sell. Now Lufthansa may find itself able to pick up Condor and its assets at a fire-sale price.
But the more likely outcome is that Germany will issue the bridge loan to Condor, as it did for Air Berlin, in hopes of stabilizing a popular German airline and important source of competition for German consumers.
Lufthansa, which used to own Condor, faces continued criticism for its inept integration of Air Berlin jets into the fleet after that carrier collapsed in 2017. With investors already skeptical over what Lufthansa will do with its low-cost Eurowings division, acquiring Condor simply may not be a viable option, even if available.
> Read More: Germany Unites Around New Taxes, Higher Airfares (But Protections For Lufthansa)
CONCLUSION
Condor hopes to emerge as a strong and independent airline, even as it is unclear whether Thomas Cook creditors will latch on to the profitable German subdivision. For now, all business continues as normal on Condor.
image: Condor
Condor will now be under even more pressure to perform and I would think Lufthansa and other European carriers now see this as an even bigger opportunity to give Condor a big push off the cliff. Not saying that is right or wrong but if I was Easyjet, Lufthansa/Eurowings etc. I would see this as THE moment to attack them and take their business. Let’s see how this plays out.
IAG could perhaps get the slots by this Fire sale purchase and put the fight to Lufthansa.
Condor is iconically German. It’s profitable and viable.
There is no reason for it not to continue as is no matter how much Lufthansa want something different.
I suspect given Lufthansa’s grip on Germany, EU competition regulators would require radical remedies to allow Lufthansa to take any control of it anyway including signficant slots at MUC & FRA.
Profitable and viable though struggling as well. I hope they can pull through but I wouldn’t be 100% sure Condor is still around this time next year if things don’t get better for them.
Condor isn’t actually “struggling”. They are profitable and the only reason they needed a loan was because Thomas Cook pilfered the earnings from Condor to try and prop up their organization. Condor can stand on it’s own and will likely get investors now that they are detaching from the mess that was the Thomas Cook Group.
I think Lufthansa acquiring Condor would not get the green light from EU competitor regulations. For Germany it would mean no competition in their home market. Condor on its own? I don’t think so – look at all the failures last year. It needs a strong owner – meaning IAG (British Airways/Iberia) or Air France/KLM. IAG just bought Air Europa. My bets are on Air France/KLM through its Transavia subsidiary – a long time, profitable low-cost airline which operates in Condor’s markets. Only from bases in Germany, slots it would love to acquire.