Connect with us

Aviation/airlines

Commission approves €550 million German state-guaranteed loan to compensate airline Condor for damage caused by #Coronavirus outbreak

SHARE:

Published

6 years ago

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

The European Commission has found a state-guaranteed €550 million public loan in favour of German charter airline Condor to be in line with EU state aid rules. Germany notified to the Commission an aid measure to partly compensate charter airline Condor for the damage suffered due to the cancellation or re-scheduling of its flights as a result of the imposition of travel restrictions introduced by Germany and by many destination countries to limit the spread of the coronavirus.

The support will take the form of a state-guaranteed €550m public loan granted via the German development bank Kreditanstalt für Wiederaufbau (KfW).The measure aims at partly compensating the airline for the damage suffered due to the coronavirus outbreak. The Commission assessed the measure under Article 107(2)(b) of the Treaty on the Functioning of the European Union (TFEU), which enables the Commission to approve State aid measures granted by Member States to compensate specific companies or specific sectors (in the form of schemes) for damage directly caused by exceptional occurrences, such as the coronavirus outbreak.

The Commission found that the German measure will compensate part of the damage suffered by Condor that is directly linked to the coronavirus outbreak. It also found that the measure is proportionate, as the foreseen compensation does not exceed what is necessary to make good the damage. The Commission therefore concluded that the measure is in line with EU state aid rules.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: "This State-guaranteed €550 million loan will allow Germany to compensate Condor, operating in the particularly hard hit aviation sector, for part of the damage suffered due to the coronavirus outbreak. We co-operate with member states to find workable solutions to support companies in these difficult times, in line with EU rules.”

The full press release is available online.

Share this article:

Share this:
Related Topics:
EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter. Please see EU Reporter’s full Terms and Conditions of publication for more information EU Reporter embraces artificial intelligence as a tool to enhance journalistic quality, efficiency, and accessibility, while maintaining strict human editorial oversight, ethical standards, and transparency in all AI-assisted content. Please see EU Reporter’s full A.I. Policy for more information.
Advertisement

Trending