The German government is about to grant TUI travel agency aid for the third time. The official decision is expected soon, Bloomberg news agency reports based on insiders.
TUI is negotiating 1 billion euros in additional financial aid from the special corona relief fund of the German government. That fund can provide credit guarantees, but in some cases also provides capital directly to affected companies.
The travel group operates, among other things, hotels, carries out flights and sells package tours. Travel restrictions in place since the corona outbreak have cut nearly all of the company’s revenues.
TUI says it needs 1.5 billion euros in the short term. The company has already received 3 billion euros in aid from the German government because of the crisis.
This concerned emergency loans. If the debt burden of the company increases, even more, TUI threatens to be unable to meet certain agreements with lenders next September.
Last spring, TUI announced it would cut about 8,000 jobs. The company is also active in the Netherlands with approximately 2800 employees.