Coronavirus crisis: TUI secures German state-backed bridging loan
After halting all operations due to the coronavirus pandemic, tourism group TUI AG has signed a state aid bridging loan of EUR 1.8 billion with German state-owned development bank KfW.
The loan has been approved by the German Federal Government on 27 March as part of the COVID-19 state support programme.
As explained, the loan will be used to increase TUI’s existing credit line with its banks amounting to EUR 1.75 billion.
Following the international travel restrictions, TUI decided to apply for the KfW loan in order to cushion the unprecedented effects of the coronavirus pandemic until normal business operations can be resumed.
The group had to temporarily suspend its tour operator, flight, hotel and cruise programmes in mid-March.
TUI emphasized it is “a very healthy company” that was economically successful before the crisis. The current financial year 2020 had started off with extremely strong bookings.
“Our employees are rightly proud of TUI’s success in recent years and they should continue to be in the future – after this crisis. We must bridge this unprecedented global situation. The German Government has acted quickly to support jobs and companies during these exceptional times,” Fritz Joussen, TUI CEO, commented.
“We are now preparing intensively for when our operations can resume after the coronavirus crisis and firmly believe, people will continue to want to travel and explore other countries and cultures in the future.”
Based in Germany, TUI group has a fleet of 18 ships operated by its brands TUI Cruises and Marella Cruises.