LOT Polish Airlines has agreed a deal to acquire former Thomas Cook subsidiary Condor.
The flag-carrier hopes to combine with the leisure airline to create a leading European aviation group, with Germany and Poland as its core markets
A bridging loan of €380 million provided by German state bank KfW, needed to avert an “acute liquidity shortage” at Condor following the collapse of Thomas Cook, will be repaid as part of the agreement.
“The acquisition of Condor fits perfectly into LOT Polish Airlines’ strategy.
“It also secures the future of Condor and offers stability and great opportunities to its employees, customers and business partners.
“We want to develop Condor’s iconic brand in Germany and also introduce it to other markets in Europe,” said Rafał Milczarski, president of the LOT Polish Airlines board.
The Polish carrier said it would maintain the brand and management team of Condor.
The combination of LOT Polish Airlines and Condor will create a group carrying about 20 million passengers per year.
“Together we will serve twice as many passengers, thus forming one of the largest aviation groups and the leading leisure airline group in Europe.
“Our partners and customers can safely plan their holiday flights with Condor,” added Ralf Teckentrup, chief executive of Condor.
LOT Polish Airlines operates on more than 120 routes with a strong footprint in central and eastern Europe, including 18 long-haul connections to North America and Asia.
In 2019, LOT carried more than ten million passengers, more than twice as many as four years before.
It operates a fleet of 80 aircraft, including 15 Boeing Dreamliners.
Condor has been flying guests since 1956.
Every year, around 9.4 million passengers fly with the carrier from eight German airports to around 90 destinations in Europe, Africa and America.