After over a year of uncertainty, Condor officially has found a new majority owner this week. Investment firm Attestor has purchased 51% of the airline and promised €450 million ($550 million) in funding. The deal will allow Condor to pay its debts and renew its fleet in the near future.
Off the hook
13 months after Condor’s purchase deal with LOT Polish fell through, possibly forcing the airline to shut down, the German leisure carrier has a new owner. According to Bloomberg, investor firm Attestor Ltd has become the new majority shareholder in Condor.
The firm has secured 51% of the carrier and will provide the airline with €200 million in cash ($244mn) as well as €250 million ($305mn) in funding for fleet renewal. The remaining stake remains with the German government through a trustee and can be picked up by Attestor in the future if they wish.
The acquisition means that Condor’s €550 million ($672mn) loan from the German government will be restructured and paid back in the coming years. This loan was crucial to helping the airline survive the COVID-19 crisis and the fallout from the shutdown of Thomas Cook.
The deal also defied the timeline offered by the airline’s CEO, who said Condor was unlikely to be sold before 2022. This purchase will allow the carrier to begin plotting its recovery and future expansion as the summer season closes in.
Timing
For Condor, this deal could not have come at a better time considering the situation. As the EU reopens its border for travelers globally and summer travel is ready for a rebound, now is the time for the German leisure carrier to shine. Indeed, the carrier is already planning its summer schedule and expanding capacity on key routes.
Last month, Lufthansa also reversed its decision to cancel feeder flights to Condor, a decision met with sharp criticism by many. According to Reuters, the German flag carrier (which once owned Condor) will continue providing Condor passengers the chance to fly its flights on their way to their destinations. This will be crucial to ensuring that the airline’s operations continue seamlessly.
New planes
After nearly two years, Condor can once again think about renewing its aging fleet of Boeing 757s and 767s. These aircraft average an age of 22 years and 25.6 years, respectively, according to Planespotters.net. While the planes have seen new cabins in recent years, they are far behind in terms of efficiency.
Condor will now be able to purchase either the Boeing 787, Airbus A330neo, or A350-900 as widebody replacements. However, the A321LR and XLR could serve as a replacement to the 757 as well. For now, the carrier will be plotting its expansion for this year and beyond.
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