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TUI travel agency in Potsdam (archive picture): Three aid packages for TUI
Photo:
Soeren Stache / dpa
In the spring, sales at TUI collapsed by 98.5 percent and the world's largest travel company is still suffering from the corona restrictions.
The EU competition watchdogs have now approved further German state aid of up to 1.25 billion euros for TUI, as the EU Commission announced in Brussels.
"Like many other tourism companies, TUI was hit hard by the corona crisis," said the EU Commission Vice President Margrethe Vestager.
According to the EU Commission, German state aid is "necessary, suitable and appropriate" to remedy a "considerable disruption in the economic life of a Member State".
Vestager is quoted as saying that the state will "receive adequate remuneration for the risk borne by the taxpayers and combine the support with conditions.
Less government aid from private investors
The now approved state aid for the world's largest travel company TUI is part of a larger support package in which private investors are also involved.
»I welcome the fact that private investors are also participating in the planned recapitalization.
This will reduce the need for state aid and will help TUI recover, ”said Vestager.
more on the subject
Corona crisis: TUI receives further billions in aid from the state
Crisis plan for 2021: TUI boss also wants to transport unvaccinated tourists
Tourism: things can only look up in 2021By Claus Hecking
According to the EU Commission, the federal government's 1.25 billion euros include a silent participation of 420 million euros, which can be converted into TUI's equity.
The package also includes a non-convertible silent participation of up to 680 million euros and a convertible bond with warrants of 150 million euros.
TUI had already benefited from further government aid in the course of the year.
For example, a bank consortium had already approved a first large loan of 1.8 billion euros secured by the state development bank KfW to cushion the consequences of the pandemic.
The TUI Group had also already announced that it would cut thousands of jobs - especially abroad.
In addition, the fleet of your airline TUIfly is to be significantly reduced.
After these two billion-dollar aid packages, TUI should soon be stabilized with additional public money.
In December, the company agreed on a third aid package with private investors, a bank consortium, the state development bank KfW and the Federal Government's Economic Stabilization Fund (WSF).
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apr / dpa
