German tourism giant TUI seals 1.8-billion-euro state loan
FRANKFURT AM MAIN, Germany – Tourism giant TUI on Wednesday, April 8, said it signed an agreement for a 1.8-billion-euro loan from the German government to help keep it afloat as the coronavirus batters the travel industry.
The bridging loan equivalent to $1.99 billion will be issued through German public lender KfW and be used to bolster TUI's credit line.
"KfW and TUI AG confirm the signing of the state aid bridging loan for 1.8 billion euros," the group said in a statement.
Global lockdowns to stem the spread of the virus have paralyzed holiday travel, forcing TUI's hotels, flights, and cruise ships to stay empty.
"We must bridge this unprecedented global situation," said chief executive officer Fritz Joussen, recalling that TUI had started 2020 "with extremely strong bookings" before the virus struck.
"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," he added.
TUI had earlier said that the state loan would be used to increase the group's credit line with its banks, giving it access "to financial resources and credit lines totaling 3.1 billion."
The German government has promised "unlimited" credit to help companies weather the coronavirus storm. – Rappler.com