Given a loan by German Gov't to enable them to continue flying
Thought it was against EU rules
Last edited by CAMiller; 13-11-2019 at 06:06 PM.
It's not against the rules.
They have to pass it through the European Commission.
Almost sure Condor are / were a subsidary of defunct Tom Cook Airlines.
1. It may be that, if the loan is not at a market rate, the German government and Condor can expect to face penalties in the future if someone complains and the ECJ rules against them; or
2. If the support does breach EU state support rules, it may be that the EU has agreed the loans, but imposed conditions. As an example of that, when the British government recapitalised RBS and Lloyds TSB it was on the condition that both banks be broken up to prevent then benefiting from a consequential market advantage. Lloyds TSB was broken up. RBS tried to demerge part of its operation (by reviving the Williams & Glynn brand) but could not find a buyer so it was agreed that they would pay substantial sums to support 'challenger' banks instead.
I hope that you find this response helpful.