Weimarer
27 Mar 2020
News / How Poland bought German Airline Condor and might lose massive from it [34]
Merged:
Few weeks ago polish LOT airlines proudly signed a deal to buy german airline Condor, which was under german state property. Poland pays over 650 million for this trade...
But now the Corona crisis strieks hard. LOT appears that it wants cancel the deal. But they signed the contract already. The contract says that in case of breaking it, LOT is forced to pay 75% of the price.
Will be interesting how this ends. Condor can see this quite relaxed, if LOT doesnt take them, they stay in state property and most likely fall to Lufthansa. But LOT is heavily damaged either way. If LOT pays the full price they get a airline that cant fly right now and since Lufthansa cancelled all support, its doubtful Condor will make any profits. If they cancel the deal, they have to pay most of the money anyways but end with nothing.
Not even the aircrafts have any high value. Condor has very old aircrafts and additional to the price LOT has to pay for Condor, they would need a complete fleet renewel.
When LOT signed the deal, they were visible proud that they just bought a german airline...but it appears like they miscalculated greatly.
Gargantuan, ever growing costs and no prospect of any profits.
I heared LOT was supported alot by polish government for this purchase out of prestige reasons and paid by polish tax money...
Merged:
Polands LOT gets shredded with Condor deal
Few weeks ago polish LOT airlines proudly signed a deal to buy german airline Condor, which was under german state property. Poland pays over 650 million for this trade...
But now the Corona crisis strieks hard. LOT appears that it wants cancel the deal. But they signed the contract already. The contract says that in case of breaking it, LOT is forced to pay 75% of the price.
Will be interesting how this ends. Condor can see this quite relaxed, if LOT doesnt take them, they stay in state property and most likely fall to Lufthansa. But LOT is heavily damaged either way. If LOT pays the full price they get a airline that cant fly right now and since Lufthansa cancelled all support, its doubtful Condor will make any profits. If they cancel the deal, they have to pay most of the money anyways but end with nothing.
Not even the aircrafts have any high value. Condor has very old aircrafts and additional to the price LOT has to pay for Condor, they would need a complete fleet renewel.
When LOT signed the deal, they were visible proud that they just bought a german airline...but it appears like they miscalculated greatly.
Gargantuan, ever growing costs and no prospect of any profits.
I heared LOT was supported alot by polish government for this purchase out of prestige reasons and paid by polish tax money...