"The immediate future of Condor, the German airline and subsidiary of the now insolvent Thomas Cook travel agency, was secured on Tuesday following the state's assurances of a €380 million ($420 million) loan.

The bridging loan from the German government and the state of Hesse, where the firm is based, was confirmed by the airline.

"This step, under the current situation, is the best for our clients, our business partners and for us. This way, we can be fully independent from the Thomas Cook Group plc and gain more security for our future," a Condor statement read.

The European Commission must now approve the loan before the money can be transferred.

German Economy Minister Peter Altmaier also confirmed that the government had approved the deal