Condor, the former German airline arm of collapsed Thomas Cook Group, has been rescued by the owner of LOT Polish Airlines.
The combination of LOT and Condor will create one of the leading European aviation groups carrying about 20 million passengers a year.
The deal is expected to be finalised by April “once customary antitrust approvals are obtained.”
PGL’s investment will allow Condor to fully repay the €380 million loan received from the German government in September.
Condor will continue to act under its current leadership while gaining from expanded connectivity and operational synergies between the airlines, according to LOT parent company Polish Aviation Group (PGL).
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“The offer to acquire Condor submitted by PGL has been selected as the most attractive for Condor, its employees, partners, suppliers and customers,” the company said.
Condor generated an operating profit of around €57 million and sales of €1.7 billion in the 2018-19 financial year. The airline operates a fleet of more than 50 aircraft from eight German airports to 90 destinations in Europe, Africa and North America.
PGL chairman Rafał Milczarski said: “The acquisition of Condor fits perfectly into PGL’s strategy. It also secures the future of Condor and offers stability and great opportunities to its employees, customers and business partners.
“We want to develop Condor’s iconic brand in Germany and also introduce it to other markets in Europe. We wholeheartedly welcome all Condor employees to the PGL family and invite them to build together one of the greatest aviation groups in Europe.”
Condor chief executive Ralf Teckentrup added: “We are pleased that Condor, Germany’s most popular leisure airline, has gained in PGL and LOT stable, experienced and dynamically developing partners who secure the future of our business.
“Together we will serve twice as many passengers, thus forming one of the largest aviation groups and the leading leisure airline group in Europe. Our partners and customers can safely plan their holiday flights with Condor,”