Thomas Cook has withdrawn plans to merge its German carrier Condor with Europe’s third largest low cost carrier Air Berlin.
The companies have told the German cartel office that the merger application is being withdrawn and the proposal has been terminated.
Both parties cited the “significantly changed economic framework conditions” since the contract was concluded – the price of kerosene alone has more than doubled – as the main reason for withdrawing the application.
Thomas Cook said it continues to view Condor as “a strong business with strong potential”.
The travel group is “pursuing a range of other available options” for Condor while discussions continue with Air Berlin “about the feasibility of an alternative transaction”.
“In the light of the potential materiality of the other options, Thomas Cook has decided to suspend its share buy back programme until further notice,” a statement said.
by Phil Davies
