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.
Related Articles
Santander reportedly weighing sale options for its Polish unit
Banco Santander may offload part or all of its holding in Santander Bank Polska, people “familiar with the matter” told Bloomberg on April 8. The considerations come as Spain’s largest ... more
Poland’s Orlen signs deal to supply Ukraine with LNG
Ukraine’s Naftogaz will purchase 100mn cubic metres of LNG from Poland’s Orlen, Ukraine’s biggest state-owned energy firm announced on March 7. The LNG will be transported from cargoes ... more
Polish company Hynfra plans $1.6bn green ammonia plant in Egypt
Polish firm Hynfra has announced plans to establish a $1.6bn plant in Egypt for the production of green ammonia, with the investment potentially rising to $10.6bn as operations expand, Al Mal ... more