German employees of Thomas Cook subsidiary Condor airline applauded the firm’s directors after they were told the company had been handed a lifeline.
The airline, which is part of the wider Thomas Cook group is still financially viable, although it needed a government bail out to stop it running out of cash over the winter.
As a result, the German government and the state of Hesse have offered £350 million in credit guarantees to keep the airline going.
Employees of Condor airlines applauded their directors who managed to secure a deal to save their 4,900 jobs following the collapse of their parent company Thomas Cook
The German subsidiary airline of Thomas Cook, Condor, has avoided financial collapse after the Angela Merkel and state authorities granted it a £350m bridging loan to cover operating costs over the winter period
Condor is still a financially viable concern so Mrs Merkel has decided to keep it afloat over the winter saving almost 5,000 jobs
The airline, which has 4,900 employees and is oriented toward leisure travel, says it remains profitable but needs ready cash to operate over the winter when bookings are lower.
The airline said it was going to court to separate itself legally from the liquidation proceedings affecting its parent company so it could keep operating as an independent business.
However, the main German and Polish units of Thomas Cook have today announced they are both entering liquidation.
Germany’s Thomas Cook said it was working with the foreign ministry and a travel insolvency insurer to help stranded travellers get home.
The dpa news agency reported some 140,000 customers were currently travelling on trips purchased through the company.
Thomas Cook, the world’s oldest travel company, ceased operations on Monday, leaving hundreds of thousands stranded around the world.
The head of German unit Thomas Cook GmbH, Stefanie Berk, said she hoped that some of the company’s operations, which include Neckermann, Oeger and Bucher travel brands, could soon resume operations.
The company is seeking bridge financing from the government to keep operating while it restructures.
In Poland, Thomas Cook’s unit, Neckermann Polska, said on Wednesday it was filing for bankruptcy.
About 3,600 customers were on vacations outside of Poland.
Polish regional authorities are responsible for helping stranded tourists from their regions.
Neckermann Polska cancelled bookings late on Tuesday to Mallorca and to the Greek island of Zakynthos and cancelled all trips to all destinations on Wednesday.