A banner reding “Condor we love flying” is seen next to a check-in counter of airline Condor at the airport in Frankfurt

BERLIN (Reuters) – The German government and the federal state of Hesse have agreed to provide Condor with loans worth 550 million euros ($596.31 million), the economy minister said on Monday, after the owner of Poland’s LOT pulled out of a deal to buy the airline.

“The company was operationally healthy and profitable in normal times and has good prospects,” Peter Altmaier said in a statement.

Condor said in a separate statement that it would receive a loan of 294 million euros as coronavirus aid and an additional 256 million euros to completely refinance a bridging loan it received after the collapse of parent company Thomas Cook.

With planes unable to fly because of travel restrictions, Condor grounded its fleet and called for state aid.

(Reporting by Thomas Seythal; Editing by Michelle Martin)