The European Commission has approved a €380 million ($419 million) German government-backed bridging loan to Condor Flugdienst, handing the Frankfurt-headquartered airline subsidiary of the bankrupt British travel group Thomas Cook a six-month reprieve to work out a restructuring plan and find new investors. Brussels said it green-lighted the rescue loan because the measure will help ensure the orderly continuation of flights and avoid disruptions for passengers while the conditions attached to the loan will reduce the distortion of competition “potentially triggered by the state support to a minimum.” Therefore, the financial support complies with EU state aid rules, the bloc’s competition authority said on Monday. Under the EU rules, member countries may support companies in distress, provided those countries limit the public support measures in time and scope and the aid contributes to an objective of common interest.
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