More money from taxpayers: The state is increasing aid for the Tui travel company
Photo: LUKAS KREIBIG / AFPThe travel company Tui, which is in need, receives further state aid. Among other things, an existing loan from the KfW development bank will be increased by 1.05 billion euros, the company announced in Hanover on Wednesday. Tui had already been awarded a first aid loan of 1.8 billion euros.
Another 150 million euros are to flow through the construction of a convertible bond that the company intends to issue to the Federal Economic Stabilization Fund (WSF). If the company is converted into shares, it could then take a stake of up to 9 percent in Tui. The issue of the bond was one of the agreed framework conditions for further help, it said.
The tourism industry is one of the sectors hardest hit by the pandemic. Tui needs the money to secure further financing after around three months of business failure between mid-March and mid-June. The delayed summer season has only been running since June. Tui is already on a tough austerity course with job cuts and lower investments, but does not expect a recovery until the medium term.
Tui wants to cut around 8,000 jobs and reduce the airline fleet
"The stabilization package worth 1.2 billion euros strengthens the group's position by making sufficient liquidity available in a volatile market environment," the Hanoverians explained. "This covers both the tourist seasonality in winter 2020/21 and other long-term travel restrictions and impairments caused by Covid-19." At the beginning of April, a bank consortium cleared the way for the first state-secured large loan to cushion the consequences of the pandemic. Tui thus supplemented an existing loan program, but remained looking for ways to increase its financial strength. CEO Fritz Joussen had indicated that the previous sums might not be enough despite parallel savings.
The Tui Group announced that it would cut up to 8,000 jobs, mainly abroad. In addition, the fleet of their airline Tuifly is to be reduced by more than half - according to reports, 900 full-time positions could be eliminated and several locations could be closed. Management and staff are now discussing implementation details. Trade unions criticize the cuts: The corporate management has failed in recent years to build up sufficient reserves and has paid high shareholder dividends in return. In addition, one should not cut jobs with the help of state money through the KfW loan.
la / dpa
