London – German charter airline Condor Flugdienst (DE) has announced that it will send 25% of employees home due to the negative effect of Coronavirus.
Following an interview with the Frankfurter Allgemeine Sonntagszeitung, Condor Chief Executive Officer, Ralf Teckentrup, said that job cuts were forced by a quest to survive the crisis.
CEO, Mr. Teckentrup said, “like other airlines, we will have to cut about 15% to 25% of jobs.” It was estimated that this would be between 650 and 1,000 jobs.
Mr. Teckentrup also added that the airline would have lower income and higher costs and “have to repay state aid.” In addition, following these factors, the CEO said that “average ticket prices will rise.”
Failed Takeover and Government Aid
Condor received state aid in April from the German government and state of Hesse following owners of LOT Polish Airlines, Polska Grupa Lotnicza (PGL) withdrawing their planned purchase of Condor.
In total, it was set that Condor would receive US$619m (€550m) from the German government. The full article on Condor’s government aid can be found here.
Condor’s future has been questioned following the collapse of the Thomas Cook Group in September 2019. DE was one of the two airlines from the group that remains today as a result of a bridging loan from the German government.