The travel company Tui, badly hit by the Corona crisis, receives billions in aid from the state. The package is intended to help bridge the "worldwide exceptional situation", as CEO Joussen said. There is also good news for holidaymakers who want to travel in May.
The way is clear for a state aid package to the Tui Group in the corona crisis. The world's largest travel provider said that several banks have given their consent to a loan of 1.8 billion euros promised by the federal government. The money comes from the state development bank KfW – however, due to changes in another loan program at the same time, other institutions had to give their consent. Tui 4.18 Tui AG had already received a commitment from the federal government. The Ministry of Economic Affairs said that the first large-volume application from the corresponding KfW special program had been approved. However, because the fresh funds are to be used to increase an existing credit line for Tui worth 1.75 billion, contract adjustments and additional advice with a banking consortium were necessary. The aim was to "bridge the worldwide exceptional situation," said Tui CEO Fritz Joussen. Now they will "prepare intensively for the time after the corona crisis". In addition to airlines and the hospitality industry, tourism companies are among the sectors that have been hit hardest by the virus crisis. Many countries have suspended air travel, vacation bookings have broken in. More than 3 billion euros in backhand Tui now has around 3.1 billion euros available, even for acute bridging. A few weeks ago, Joussen had put the liquidity at 1.4 billion euros. In mid-March, the Hanoverians had interrupted almost their entire program of package tours, flights, cruises and hotel operations, and the return program for their own customers and participation in the Federal Foreign Office's campaign for other German vacationers who were stranded abroad has now almost been completed . Due to the expected financial burdens, Tui was no longer able to forecast further business developments in the current year, and short-time working was reported for numerous employees from April – in some areas until September. According to the company, the payments of customers are currently adequately secured. Holidaymakers can postpone travel free of charge Tu also announced that vacationers can postpone travel booked for May free of charge. The provider is following other major tour operators such as DER Touristik and FTI. Tui Germany initially canceled all trips until April 30th. It was still unclear what possible cancellation regulations might look like, and the group may not pay a dividend to shareholders during the term of the new loan. In the 2019 financial year, Tui AG had around 70,000 employees and almost 19 billion euros in sales, making significantly less profit than in the previous year. Burdened by the flight ban for the Boeing 737 Max medium-haul jet, the net result dropped from 727.2 to 416.2 million euros. Tui had to replace the type with rented replacement machines with higher consumption.