After many months of uncertainty, the German airline Condor was saved in the summer of 2021 thanks to the entry of the investment company Attestor. However, it was clear from the beginning that the British investment group would not want to finance both the growing Condor and the newly established subsidiary Marabu Airlines in the long term on its own.
According to information from the financial agency Bloomberg, which cites specialized aviation media, Attestor is working with Barclays Bank to identify a strategic partner for the two airlines. The aim is to find an investor who will contribute to the further development of their activities, possibly also through a minority stake in the parent company. Neither Attestor, nor Condor, nor Marabu have commented on the information so far.
Debts of 400 million euros until 2026
Since Attestor’s entry in 2021, the company owns 51% of Condor, while the remaining 49% remains in the hands of the state development bank KfW, as a result of state aid granted after the collapse of Thomas Cook and during the pandemic.
Unlike Lufthansa, which repaid its own debts as early as 2021, Condor has been given a deadline until 2026 to repay loans of 400 million euros. Once the repayment is complete, Attestor will theoretically be able to acquire the remaining percentage, if it wishes.
Investments of hundreds of millions
In parallel, the investment group has already allocated significant funds for the restructuring and modernization of the airline. Initially, it invested 200 million euros to stabilize Condor, followed by 250 million euros for the renewal of the long-haul fleet and the ongoing upgrade of short- and medium-haul aircraft. This investment plan also includes the creation of Marabu Airlines, which began flights in spring 2023, focusing on the holiday market.
“Ready for the next step”
Condor CEO Peter Gerber had already hinted last year that Attestor did not intend to remain a shareholder indefinitely. As he noted at the time, the strategy of an investment fund is “to invest at the bottom of a cycle and exit when it believes it has reached the top.”
For this reason, Gerber stressed that Condor must be “in a position of strength,” either in the event of a tender process or if interested investors appear.
More attractive image for investors
Recent financial data reinforces the German airline’s momentum. For the 2023/24 fiscal year, Condor recorded losses of 62 million euros, but almost halved the losses compared to the previous year. According to management, based on internal operating results, the company has already turned profitable.
This improved image, combined with the modernized fleet and the expansion of the tourism product, makes Condor particularly attractive to strategic investors interested in the European leisure aviation market.
Condor’s path, from the Thomas Cook crisis to the current attempt to find a partner, is a typical example of successful restructuring in the aviation industry, with the hallmark of an aggressive but targeted investment strategy. The question now is who will be the company’s next ally in its new phase of growth.
