Polish Aviation Group (PGL), the state owner of the Polish flag carrier Lot, pulled out from a deal to buy the German airline Condor, it said on April 13.
PGL had announced the deal in late January but the outbreak of coronavirus (COVID-19) has put question marks over its finalisation, as Condor’s financial standing deteriorated after the pandemic hit the tourism industry across Europe.
Prior to the outbreak, Condor was kept on life support by the German authorities following the collapse of its owner, the travel agency Thomas Cook. Berlin could now consider nationalising the airline in order to save jobs.
“I confirm that PGL informed Condor today about its withdrawal from the purchase of this company. We don’t provide any more information at this stage,” PGL communications director Katarzyna Majchrzak said in an email sent to the media.
By taking over Condor in a deal with a reported value of around €300mn, Lot had hoped to create an aviation group able to service around 20mn passengers a year. The Polish flag carrier will most likely need public aid to survive the collapse of air travel due to the coronavirus outbreak, the Polish government said earlier this month.
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