German carrier Condor is facing a renewed investigation into financial support granted by the country’s government, approval for which was recently annulled by the European General Court. The in-depth investigation will probe whether a E321m restructuring package – approved in July 2021 – is compatible with state-aid rules. Assessment of Condor’s compensation measures has been complex. The carrier was provided with rescue financing from the German government, through development bank KfW, when leisure company Thomas Cook Group collapsed in 2019. It was then further financed when, a few months later, the Covid-19 pandemic caused havoc in the air transport sector. Condor’s compensation measures had already been the subject of a General Court annulment in June 2021. The Commission says, in regard to the latest investigation, that the carrier had been provided with E90m in debt write-off from a E550m public loan, plus a re-organisation of the loan’s repayment conditions, and a E20m write-of of interest debt. Approval of this funding, however, was overturned by the General Court in May this year after it ruled that the aid had been granted without a formal investigation procedure.<br/>
unaligned
Bahrain's national carrier Gulf Air has announced that it has signed a Collective Labour Agreement with the Gulf Air Pilots Trade Union (GAPTU). The agreement settles a longstanding dispute over pilot employment terms and allowances, marking an amicable resolution between the two parties. It was signed by Gulf Air Group CEO, Jeffrey Goh, and Captain Essa Albinali, President of GAPTU, in the presence of representatives from both sides. On the deal, Goh said: "This agreement sets the terms and conditions for current pilots' allowances and establishes a foundation for future pilot employment in line with the provisions of the Bahraini Labour Law." "It is the beginning of a new chapter of cooperation and collaboration between the executive management and the union, with a focus on achieving sustainable success for the company," he stated. Captain Albinali, expressing his gratitude to the executive management of Gulf Air for the positive outcome of the negotiations, said: "I extend my appreciation to all pilots for their continuous support of the union's efforts and their dedication in the workplace. Congratulations to the pilots and the Gulf Air family on this achievement, which comes as a result of the cooperation and understanding between all concerned parties."<br/>
Australian airline Rex is set to fall into administration as soon as Wednesday, people familiar with the matter said, the second domestic airline to fail this year in a market dominated by Qantas Airways Ltd. Regional Express Holdings Ltd., as Rex is formally known, will appoint Ernst & Young as administrators, according to the people, who asked not to be named because the information is private. The airline’s shares were halted from trading Monday, pending an announcement. Spokespeople for Rex and EY declined to comment. Rex, which mostly serves regional and remote towns, had more recently started flights between major cities such as Sydney and Melbourne in a direct challenge to Qantas and Virgin Australia Airlines Pty. The larger rivals overwhelmed Rex in a price war and it struggled to consistently make money. The appointment of Ernst & Young likely marks the end of Rex’s short-lived attempt to enter Australia’s main aviation market with Boeing Co. 737 jets. Tickets on major Rex routes including Sydney-Melbourne and Perth-Melbourne were no longer available as of Tuesday, according to the airline’s website. Rex shares have fallen 35% this year, slashing its market value to just A$63m ($41m). More broadly, Rex’s struggles — after more than 20 years of operations — reflects an aviation industry still grappling with the effects of the pandemic. Manufacturing woes at Boeing Co. and supply chain ruptures have made new aircraft hard to find, while falling fares are putting pressure on profitability. Australia has already seen one airline fold this year, the startup Bonza. Liquidators at Ernst & Young also took over Air Vanuatu in May after costs spiraled out of control.<br/>