Wednesday, 8 April 2020

Bridging loan for TUI approved as UK operation extends grounding until 14 May

TUI head office                                                 Photo TUI
KfW and TUI AG confirm the signing of the state aid bridging loan for 1.8 billion euros. The loan had been committed by the German Federal Government on 27 March as part of the COVID-19 state support programme. TUI's current Revolving Credit Facility “RCF” banking consortium supports the KfW loan and the addition of the 1.8 billion euros into TUI's existing RCF credit line. 

Following the international travel restrictions, TUI decided to apply for the KfW loan in order to cushion the unprecedented effects of the pandemic until normal business operations can be resumed. TUI like others had to temporarily suspend its tour operator, flight, hotel and cruise programmes. TUI is a very healthy company that was economically successful before the crisis – it has a strong strategic positioning, structure and substance. The current financial year 2020 had started off with extremely strong bookings.

TUI CEO Fritz Joussen: "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. 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.”

TUI UK extends cancellation period.....
Due to the ongoing situation regarding COVID-19, the Foreign and Commonwealth Office has advised against all but essential travel. Unfortunately, this means that we’re no longer able to offer TUI holidays travelling on or before 14 May 2020, Marella Cruises sailings travelling on or before 31 May 2020, and TUI River Cruises sailings travelling up until and including 25 November 2020. 

Recommended for you...

No comments: