A few years ago, the German holiday flyer Condor received more than 300 million euros in support from the German state.
Competitor Ryanair objected to this, and with success.
Now the conflict is entering a new round, reports the German dpa.
The German state had saved Condor from collapse in 2019 with a loan from the development bank KfW, after Condor’s then-parent company, Thomas Cook, went bankrupt.
With the restructuring aid, Germany wanted to support the airline in the form of two write-offs of 90 and 20.2 million euros.
These were part of the restructuring plan launched in October 2019 with a total value of EUR 321.2 million.
The European Commission, which as the highest competition authority ensures that companies do not receive unfair advantages through state aid, had approved the plan in 2021.
Europe’s largest budget airline, Ryanair, had objected to this in the European courts.
The European Court of Justice struck down the approval 2.5 months ago.
According to the European Court of Justice, the Commission had not sufficiently examined whether Germany would receive a fair share of the future value of Condor as a result of the aid.
The European Commission is now re-examining whether the state aid was in line with EU law.
The Authority stresses that the start of the investigation does not mean that the aid was actually in breach of EU rules.
Condor, a well-known name in the German and European travel industry, ran into financial problems after the bankruptcy of parent company Thomas Cook.
To save the airline and minimize the impact on the tourism industry, the German state stepped in with significant financial support.
This support was intended to help Condor restructure and get back on track.
The loan from the German Development Bank (KfW) was a crucial part of this rescue plan.
The plan also included write-downs worth millions of euros, which were intended to strengthen Condor’s financial position and allow the airline to continue its business operations.
The legal dispute began when Ryanair objected to the European Commission’s approval of the state aid.
Ryanair argued that the aid to Condor gave an unfair competitive advantage and was in breach of EU competition rules. (Photo Shutterstock).
