EU OKs $419M rescue aid to Thomas Cook German airline

The EU said on Monday in a statement it has approved its decision to grant Condor, a subsidiary of collapsed tour operator Thomas Cook, a total amount of 380 million euros ($419 million).

"The measure will contribute to ensuring the orderly continuation of air transport services and avoid disruptions for passengers," it added.

The statement also noted the strict conditions attached to the loan, saying after six months, the loan will either be fully repaid or Condor will carry out a comprehensive restructuring to ensure its long-run viability.

Faced an acute liquidity shortage, Condor applied for the loan after British Thomas Cook halted its operations.

On Sept. 23, the U.K. Civil Aviation Authority announced that Thomas Cook, one of Britain’s biggest holiday operators and airline, has "ceased trading with immediate affect".

The collapse of the iconic 178-year-old British tour operator left more than 20,000 employees jobless and at least 150,000 holidaymakers stranded abroad.

An increase in online bookings, uncertainty over Brexit, financial crises in 2007 and even the climate crisis are seen as the main reasons behind its liquidation.

Thomas Cook’s demise also occurred because it failed to secure a government bailout.