Thomas Cook collapse: Germany considers issuing financial aid to the Condor airline

Germany is considering issuing financial aid to the Condor airline after Thomas Cook declared bankruptcy.

Thomas Cook, which has a 49% share in the airline, collapsed on Monday, writes BBC.

Condor has applied for a bridging loan from the federal government and is awaiting a response, with German media reporting the amount requested was €200m ($220m; £176m).

Thomas Cook's collapse has reportedly left 600,000 tourists stranded, including tens of thousands of Germans.

German economy minister Peter Altmaier said that the government would make a decision on financial aid within the coming days.

The government in the state of Hesse has already promised its support, a statement from the airline said.

"I assure you that we will do everything in our power and leave no stone unturned, so that our fleet continues to bring our guests reliably to their holiday destinations all over the world and back home as usual," Ralf Teckentrup, chairman of Condor said.

Condor has said it will not carry passengers who have booked with Thomas Cook or its subsidiaries. Those passengers have been advised to get in contact with their tour operator.

A German government official said that compulsory insurance should cover most German travellers if they are stranded abroad, Reuters reports.

Meanwhile, Thomas Cook's subsidiary in Germany is still operating but has stopped taking bookings, DW.com says.

Thomas Cook's German operations are widely considered to be in a healthier state than those in Britain, where they have remained profitable, DW adds.

There is concern in countries such as Egypt and Greece that local businesses could be financially impacted by loss of tourism.

  • The Gambia's government has held an emergency meeting over the collapse of Thomas Cook. There is concern that its collapse will heavily impact tourism which contributes more than 30% of the Gambia's GDP
  • In Egypt, Thomas Cook operator Blue Sky said reservations until April 2020 have been cancelled. Bassem Halaka, chairman of the Tourism Syndicate in Egypt, said that Thomas Cook "was a major organiser of charter flights from the UK to Sharm El-Sheikh" and that tourism in these resorts would be affected
  • In Cyprus, the loss for hoteliers and the wider economy is about €50 million, according to Cyprus' deputy tourism minister Savvas Perdios. He added that hotels were owed money for July, August and even September
  • 50,000 tourists are stranded in Greece, according to the tourism minister. Grigoris Tassios told local TV that hotels were expected to make losses on payments from the past two months. He said that hotel companies would attempt to recover money from Thomas Cook in court
  • In India, Goa's Travel and Tourism Association said that the loss of Thomas Cook is a "big, big, blow to the industry."
  • Spain's Balearic Islands faces million of euros in losses. Thomas Cook has a tax office in Palma with hundreds of employees, and also works with 20 hotels in the Balearic Islands and 20 in the Canary Islands
  • Turkey's Hoteliers Federation (TUROFED) has warned that the country could miss out on up to 700,000 tourists a year due to the collapse of the tour operator. The chairman of TUROFED, Osman Ayik, told Reuters: "There are a large number of small businesses whose fates depend on Thomas Cook, especially in Mugla, Dalaman and Fethiye." He added that some small hotels in Turkey are still owed around £100,000 - £200,000 ($125,000-$250,000)
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