Polish Aviation Group (PGL), the parent company of LOT Polish Airlines (LOT) and leading aviation company in Central and Eastern Europe, is buying German airline Condor to create not only a new European airline group, but also one of Europe's leading aviation groups.
LOT is one of the oldest and fastest-growing carriers in Europe which services over 120 routes. It operates a fleet of 80 aircraft, including 15 Boeing 787 Dreamliners. PGL group generated profits of around 1.9 billion euros in 2019.
Condor has been providing service as a leisure carrier since 1956 and was formally part of the Thomas Cook Group, which collapsed in September 2019. Operating more than 50 aircraft, Condor flies around 9.4 million passengers from eight German airports to around 90 destinations in Europe, Africa and America annually.
The combination of LOT and Condor will carry roughly 20 million passengers per year. Though Condor will remain a stand-alone brand, the airline will gain from expanded connectivity and operational synergies between the airlines.
The leisure carrier will provide a complementary business for LOT, as it will become the center of PGL's leisure strategy with a focus on growth in Germany as well as adjacent markets.
The transaction between PGL and Condor should close by April 2020, once customary antitrust approvals are obtained and Condor exits the protective shield proceedings. PGL's investment will allow Condor to fully repay the loan received from KfW.
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