TUI realized a turnover of 71.8 million euros in the second quarter, a decrease of 98.5 percent compared to the same period last year. At that time the turnover was still 4.74 billion euros. The travel organization also announced a loss of more than 1.4 billion euros on Thursday.
By cutting costs, TUI hopes to achieve cost savings of 300 million euros this year. In total, annual operating costs are now structurally 30 percent lower, the travel organization writes.
Due to the large losses, TUI was forced to borrow another 1.2 billion euros from the German government on Wednesday. The company hopes to perform it until the spring of 2021. Around that time, the travel company expects a cautious recovery of the travel industry. TUI, the number of bookings for the following summer is now 145 percent higher than the number of bookings for the summer of 2020 that came in last year.
Much of TUI’s journeys resumed in June, with 1.7 million bookings coming in so far. Last month, the travel company was able to welcome half a million holidaymakers.
Should there be a second corona wave with new restrictions and lockdowns, TUI is prepared for this, says CEO Fritz Joussen. “With the second loan from the government, we are in good shape, should tourism be affected again.” The available financial resources of the travel organization now amount to 2.4 billion euros.
Large tour operators have canceled further trips. A stop was originally only planned until May 3. However, Tui is already commenting on trips in summer.
The tour operators Tui, FTI and Alltours extend the stop for everyone to travel until May 15th. The companies announced on April 24, 2020. The reason is the corona pandemic. So far Tui and FTI only canceled trips until May 3, Alltours until the end of April. “Guests whose holidays can no longer take place will receive all information about the cancellation from us in writing in the coming days,” said FTI boss Dietmar Gunz.
Tui said it was preparing to restart the tourism sector. “It is not yet clear when travel can begin again,” said Hubert Kluske, Managing Director for Sales and Marketing. “However, we already have the certainty today that the Germans want to travel again as soon as possible”.
As soon as individual countries give the green light, Tui is able to offer trips there. “We assume that we will fly guests to various holiday destinations in midsummer.”
Alltours said they hope “that after May 15th, tourism will start with individual arrival in Germany can start again slowly “.
Hamburg, Berlin The announcement on April 1, of all things, sparked euphoria among start-up lobbyists in Berlin: finance minister Olaf Scholz (SPD) announced a two-billion-euro protective shield especially for emerging tech companies. The efforts to convince the German Startups Association, which was newly formed a few months ago, had obviously borne fruit.
But now the founding lobbyists are worried about the implementation. The association now wants to put pressure on the media again.
“We have just received confirmation that the two billion euros will not be released in the Ministry of Finance. We have therefore already decided to escalate today, to send a letter to Scholz and at the same time to start a small media campaign to increase the pressure, ”says an internal WhatsApp message with which lobbyists will get signatures on Thursday wanted to. The news is available to the Handelsblatt.
Since the beginning of the corona crisis, the start-up association around its boss Christian Miele from venture capitalist Eventures has repeatedly publicly promoted a wide range of help for the industry – including in an online press conference together with the digital representative of the federal government, Thomas Jarzombek (CDU). Now the open letter should increase the pressure.
In the letter to Scholz, the association firstly wants to praise the finance minister for “recognizing the specific needs of startups”. Now the rapid use of the “promised customized instruments is required”.
The letter ends in the appeal: “Keep your word, Minister Scholz! Release the two billion euros! ”Upon request, the association confirmed the existence of the letter, which now has 500 signatories and is expected to be published at the weekend.
“While the other auxiliary instruments have already been focused, there is still no timetable for the start-up measures,” said Christoph Stresing, managing director of the Federal Association of German Startups (BVDS). “Speed is now the order of the day.”
Industry should also take risks
There are obviously good reasons for the hesitant implementation. The federal government is looking for a way to deal with the special situation of the industry. After all, the early-stage investors, who are particularly strong in the German scene, calculate their investments with failure rates of around 80 percent even in normal times. That is why the Federal Ministry of Finance wants to prevent those founders whose business idea is not viable anyway from being supported.
“The topic is complex, because we are talking about support for start-ups about equity financing, which is more likely to default than normal loan financing,” said State Secretary Jörg Kukies on Friday.
So far, the industry has preferred so-called matching. The state should increase funding rounds from venture capitalists. This is how the industry should take risks.
“We want to protect start-ups, not venture capitalists. Therefore, a promotional measure makes sense in which the venture capitalists refill their own money, which is then replenished by the state, ”said the founder of the venture capitalist Lakestar, Klaus Hommels, this week’s Handelsblatt.
However, critics doubt the selfless intentions of venture capitalists. “Why should venture capitalists be the gatekeepers for state aid?” Asks Sven Schmidt, co-founder of Hamburg investor ICS and critic of the industry. Start-ups that are financed without venture capital threaten to be excluded. In addition, the large venture capitalists in particular had earned very well in the past boom years and should not immediately ask for state aid, Schmidt criticizes.
However, the federal government expects the billion dollar umbrella to start soon. “I am confident that we can get the aid on the way quickly. We are in close and constructive exchange with the representatives of the industry to develop a viable concept, “said State Secretary Kukies.
More: Start-up investor Klaus Hommels criticizes state aid for Tui and Adidas
Hamburg Venture capitalist Klaus Hommels criticizes government aid for listed companies such as Tui and Adidas. The state subsidized the corporations “with a loan, although they could simply make a capital increase, in which the mostly foreign existing investors would have to invest,” he told the Handelsblatt. “We protect foreign investors in listed companies. This is where money comes in without old investors reinvesting. “
Hommels supports the European start-up lobby United Tech of Europe. “We want to protect start-ups, not venture capitalists. Therefore, a promotional measure makes sense in which the venture capitalists refill their own money, which is then replenished by the state, ”said the founder of the venture capitalist Lakestar.
But not all young companies could survive: “I think some startups will die that were only kept artificially alive anyway. For this you concentrate on the promising ones. If the government increases such rounds, even more money could flow into better projects in the crisis. ”
Hommels calls for government co-investments in collaboration with the industry. “Therefore, we also need a relevant advocacy group in Brussels with its own ethics, which in itself ensures that no free riders appear,” he said. However, individual European venture capitalists tried to take advantage of the situation. “Some are behaving impossible. We want to counteract this at the association level. It is not about winning the crisis, ”said the 53-year-old.
He sees the crisis as an opportunity for founders to concentrate on real problems. This could help Europe to become more independent of the United States in critical infrastructure. “We cannot rely on Americans for all system-related things. Think about it: The Americans could turn off the credit card infrastructure for us at any time, ”warns Hommels.
“Wouldn’t the biotech company Curevac be from Germans like that? SAP-Funded with founder Dietmar Hopp, the Americans would have snatched this vaccine developer out of our hands. This is a realization that is finally pervading: We have to finance our economy ourselves. ”
Read the entire interview here:
Mr. Hommels, have you postponed or canceled investment rounds yourself because of the crisis? The most important rule for me is: A promise, also verbally, has to be kept. This is a cultural asset because we come from the land of good merchants. We continue to look at new opportunities as normal.
There is no hesitation? Well, a no-go is when founders arrive with documents from pre-crisis times that they have not adapted to the new times. In addition, there is now a screening process for everyone: A few months ago, funding was less critical. Now there is a harder selection.
Is it bad? On the contrary: that brings clarity. This is always the case in difficult times. In the financial crisis, for example, some of today’s very big companies were built – like Zalando, Uber and Airbnb. Why? Because their ideas are based on real needs, which are much more obvious in tough times. More modest means are then sufficient for such ideas.
In your opinion, what are these real needs at the moment? The topic of helping – something like Nebenan.de. In addition, delivery services go through the roof. Above all, venture capitalists are given a new role. If the biotech company Curevac had not been financed by Germans like SAP co-founder Dietmar Hopp, the Americans would have snatched this vaccine developer out of our hands. This is a realization that is finally pervading: We have to finance our economy ourselves.
Do we not have to count on fewer rounds of financing from overseas simply because travel is currently hardly possible? On the other hand, the acceptance of video calls has increased. Before Corona, I would have said that you should have met in person first – that’s always better because you get a feel for whether it fits on a human level. In the meantime, however, it is totally accepted to only meet virtually.
Would you make a deal if you only knew people by video? Meanwhile yes.
They have brought together start-up associations from several European countries – probably also via video calls – and are calling for more coordination on the current rescue plans. Why? Many small associations are not heard in Brussels, so we have to speak with one voice there.
Isn’t your industry lobbying much better than in previous crises? In Germany in particular, start-ups were included in the rescue packages very early on. Yes that’s true. Through the start-up association, we led Christian Miele with Jörg Kukies, Secretary of State for Finance, Thomas Jarzombek, Digital Representative, and KfW Capital’s Chief, Dr. Jörg Goschin, ideas exchanged. The three do a great job in this difficult situation. However, aid for start-ups is basically not government programs, but is based on initiatives by individuals. Just like Kukies and Jarzombek in Germany, individual politicians are doing this in other European countries. As associations at European level, we want to provide you with an overview and contacts.
How do you start? First we put an overview of the respective national programs online. We don’t want to evaluate, we want to enable a comparison and exchange of ideas.
Why is it needed? We need it to prevent deadweight effects. Otherwise no politician can assess what the relevant demands are. That is why we also need a relevant advocacy group in Brussels with its own ethics, which in itself ensures that no free riders appear.
Do you see black sheep in the industry? Yes, there are also venture capitalists in Germany who no longer stick to existing, written financing commitments in the crisis. Some are behaving impossible. We want to counteract this at the association level. We are not concerned with being crisis winners. Therefore, the aid programs also take some time, because it is very complicated to prevent deadweight effects.
Nevertheless, there is criticism of state aid for start-up financiers. After all, there is already the word risk in the risk capital asset class – and every investor should expect to lose his entire stake. At first glance this is understandable, but actually pure polemic. Have a look who really should receive billions of state aid: the listed companies Adidas and Tui. But there are hardly any German shareholders behind it. The state supports this with a loan, although they could simply make a capital increase, in which the mostly foreign existing investors would have to invest. In the case of listed companies, we protect foreign investors. This is where money comes in without old investors reinvesting. However, we want to protect start-ups, not venture capitalists. Therefore, a promotional measure makes sense, in which the venture capitalists refill their own money, which is then replenished by the state.
Couldn’t venture capitalists simply inject enough own money, which is still available in most funds? We plan with different scenarios when we finance start-ups. A reserve is always calculated. But such a lockdown case, in which sales are zero for months, is of course not factored in, so we technically don’t have the money at our disposal. The start-ups therefore need state aid in order to survive a break of several months unscathed – for this special situation alone.
Doesn’t that help you as a venture capitalist? No, it’s about the survival of innovative start-ups. I myself could just sit back and relax. But we go in full, help the companies, do 1000 things. We are even considering helping KfW Capital with personnel. It’s actually nice that we can now do something together with colleagues like Holtzbrinck Ventures and Eventures. It is a clean event.
They have long advocated that European start-ups should be less dependent on money from the United States and Asia. Do you think that the renationalization tendencies in the corona crisis, for example with closed borders, bring the topic more into the general consciousness? Yes, because we are now seeing what such a sell-out means: If we could not independently support start-ups in Europe, America could have stolen the German vaccine invention from Curevac. This concerns us all and certainly contributes to the general awareness of the need for action.
The Americans deny that. And wouldn’t that be an exception that occurs every 100 years anyway? No, that also applies to artificial intelligence, climate issues and many other systemically relevant fields. Do we want to fight the pandemic of movement data from Google and Apple be dependent? We cannot rely on Americans for all system-related matters. Think about it: The Americans could turn off the credit card infrastructure for us at any time.
Does the crisis raise awareness of this? If we do nothing there, we cannot act autonomously and become technically dependent. That mustn’t happen.
The idea of economic self-sufficiency has long since been a thing of the past in times of globalization, and many corporations operate globally without discrimination. Why should it be different in the start-up area? I am not concerned with start-ups, but with system-relevant infrastructures. However, these are also developed by start-ups.
The alternative would be an even stronger anchoring of free trade, so that national egotisms are excluded – for example a new edition of the failed transatlantic free trade agreement TTIP. I would have agreed with you when the President was still called Barack Obama. But at the moment, the politics of the Americans are not reliable.
Do you think that the crisis can lead to a stronger European response, for example in the area of start-up financing? In any case. There is now a chance to make the voice of start-ups audible in Brussels and explain what kind of regulation we need after the crisis.
How fast do you think the situation will return to normal? I can’t say that – at the moment everything depends on how quickly we get a vaccination.
Do you dare to predict how severe the slump will be?
I think some startups will die that were only kept artificially alive anyway. For this you concentrate on the promising ones. If the government increases such rounds, even more money could flow into better projects in the crisis.
Mr. Hommels, thank you for the interview.
More: Dependency on foreign donors is becoming a problem for start-ups
have you ever had of Biontech belongs? Probably not. But now it is Mainz biotechnology company World famous in one fell swoop – because the Paul Ehrlich Institute authorized him to test a vaccine against Covid-19 on 200 people together with the US partner Pfizer. Company founder Ugur Sahin expects the first interim results at the end of June and approval – if successful – not before 2021.
Biontech belongs now Moderna (USA) and Cansino Biologics (China) among the pioneers among 80 Covid-19 vaccination projects worldwide, is analyzed by our medicine man Siegfried Hofmann in the current cover story. Biontech’s stock temporarily rose by almost 50 percent on Tuesday, and the company is now worth almost ten billion euros. Mainz, how it researches and laughs.
Top investor Klaus Hommels, Founder of the Lake Star Fund, knows everything about gimmicks and Quirks of the financial market. Therefore, listen carefully if he likes government aid for listed companies Tuiand Adidas criticized. Here there are loans for companies, which could also simply make a capital increase, in which then mostly foreign shareholders would have to go along, says the capital professional in the Handelsblatt interview. “With the corporations we protect foreign investors”, continues Mosel Hommels – and thus aims at the Egyptian billionaire Nassef Sawiris (Adidas) and on the Russians Alexei Mordashov (Tui). Theodor Fontane comes to mind: “Where there is a lot of money, there is always a ghost.”
With regard to the easing of the “lockdown” in Germany, Christian Drosten criticizes that there are now “free interpretations” of the easing and a lot of imagination in the economy.
If Germany is happy about the easing of the “lockdown”, the man, who has been a for weeks Virologist of the Republic occurs – as reliable as the Schäffler, who turn at noon at the carillon in front of Munich City Hall. He regrets very much these days, “that we are perhaps just about to completely lose our lead in Germany,” warns Christian Drosten from the Charité. One has to ask oneself “whether all of this still makes sense,” he says with a view to the reopened shopping malls.
There would now be “free interpretations” of the easing everywhere and a lot fantasy in the economy, Drosten said, and it would not surprise him if a situation arises in May or June “that we can no longer control”. Perhaps the Germans no longer follow the Warner as usual, but they still appreciate him: for his NDR-Podcast “The Corona Virus Update” has been nominated for the Grimme Online Award, Information category.
In his current studies, psychologist Stephan Grünewald is experiencing a political dichotomy among the people.
What does corona mean for the psyche of the Germans? I spent a long time discussing this with the psychologist Stephan Grünewald entertained, head of the Rheingold Institute and member of the Corona Expert Council of the NRW state government. He is actually experiencing one in his current studies political division in the people, he says: Some wanted a variant “Söder plus”, that is, a “leader” who is even more assertive and rules through more clearly, like Markus Söder So in Bavaria. The others, on the other hand, think that the lockdown limits deprivation of liberty, you need more open dealings and more Personal responsibility. This is where the prime minister comes in Armin Laschetfrom NRW, “the type of moderating politician who takes citizens with him and includes all risks.”
The climate in the Grand coalition had recently become rougher again. The initial one Magic the common fight against corona seemed to have evaporated. But now the tops of union and SPD at her meeting with Chancellor Angela Merkel a coup: because of the corona crisis, you lift that Short-time work allowance at. Now it is no longer 60 and 67 percent of the last income, but much higher rates.
The aid payment should increase to up to 80 percent and for parents up to 87 percent, staggered according to the duration of the benefit. More than 700,000 companies have already registered short-time work in Germany – the new benefit will probably be the one Opinion values per Union.
It’s been a bit since the lingerie brand “Victoria’s Secret” hip and was an ornament of the parent company L Brands. That was before “Metoo” and “Body Shaming”. However, even the resale of the former cult company has burst. Financial investor Sycamore Partners Bang on Fall ends the February 2005 takeover of 55 percent of the capital for $ 525 million.
To run the business back, the refugees have one legal action filed with a Delaware court. Justification: Because L brands The deal was null and void in the corona crisis, when several branches were closed, staff was on leave, and rent payments were suspended. The former owner of “Victoria’s Secret” sees it completely differently and in turn thumps it up Performance of the contract. The old wisdom “Sex Sells” seems to be overridden in this dispute.
Abigail Disney is upset that entertainment company Walt Disney has taken more than a hundred thousand low-income workers to its parks.
(Photo: Getty Images)
And then there is Abigail Disney, Descendant of the famous American cartoon clan without influence, but with opinion. The granddaughter of Walt Disney’s brother Roy is upset that the entertainment company more than a hundred thousand low earners on vacation in his parks after the managers got lavish bonuses and the shareholders got a nice dividend. “What the actual F *** ?????”, tweeted Mrs. Disney and criticized the company for not caring about its workers. Earlier she had the salary of the one who left in February Ex-CEO Bob Iger (2019: $ 47.5 million) labeled “crazy” – it was 911 times higher than the average salary for all employees.
I wish you a harmonious day on which everything will hopefully be worthwhile for you.
Binc on Rügen or Ballermann on Mallorca, mountaineering in the Karwendel or bathing on Crete – in the Corona crisis vacation plans are overshadowed by the question of whether and where a trip is still possible. EU Commission President Ursula von der Leyen put the biggest damper when she said about summer vacation: “I advise to wait with such plans.” The reactions from tourism were harsh. “We don’t need anyone to catapult summer vacations,” replied Norbert Fiebig, President of the German Travel Association (DRV).
But there is no certainty about destinations and accommodations: is Greece more likely to open than Spain? For Hellas, the Johns Hopkins University counts only 2400 cases, for Spain 208,000. Or are holidaymakers better off in German low mountain ranges? Or should you postpone trips to autumn? Summer vacations are considered unlikely for Italy, which is the most affected by the corona virus in Europe. Sweden, on the other hand, has not prevented entry, but it is currently not possible to drive there via Denmark.
The Spanish government expects the holiday business to start slowly in the second half of the year, but would like to leave foreigners outside – to the displeasure of hoteliers in Mallorca. While the pandemic on the mainland claimed thousands of victims, the consequences on the islands remained more manageable.
In Germany, the infection numbers in the otherwise popular Alpine foothills are higher than in other parts of the republic. Islands in the North Sea and Baltic Sea from Sylt to Usedom are at least currently closed to tourists – however, any kind of opening is sought.
Very few click on “Book”
At least when it comes to deciding not to travel after weeks with contact restrictions, the travel association should have many citizens on its side. Even if customers think of their own relaxation rather than the well-being of the company. Sunshine and vacation – this pairing has worked for decades. It is hardly surprising that the big holidays come into view with the current sunny days. TUI, the travel market leader, observes that many people do research on the Group’s website. Only a few click on “Book”.
At the same time, hundreds of thousands, if not millions, of customers who booked early before the virus shock persisted. They are afraid of their travels or reimbursement of their payments. TUI had the strongest booking January in the Group’s history. In the holiday world, the impatience and the feeling of being left in the dark in the crisis grows. Travel agencies feel this through vigorous customer inquiries. The offices miss information from travel companies. They refer to the federal government.
The only thing that is certain is that no trip starts until May 3rd. As long as the global travel warning of the Federal Foreign Office applies – extension possible. Already for May 4th – in less than two weeks – vacationers lack the certainty. DRV President Fiebig criticized Foreign Minister Heiko Maas (SPD) in an unusually sharp form. “If there are general warnings about trips abroad in the future, this will not do justice to reality,” he said. So far, travel warnings have been a guideline for the industry and have only been discussed in the back room.
For the time being, the choice of destination is like a big guesswork, in which more and more voices are getting involved. The Bavarian Prime Minister Markus Söder (CSU) said: “From the current perspective, the likelihood that vacation in other countries is possible in the summer turns out to be unlikely.” in Bavaria – can catch up on business. CSU party colleague and development minister Gerd Müller, on the other hand, said that summer vacations could not only be possible again in Germany. “I also believe that there is an opportunity to do so in the Mediterranean region – including in North Africa,” he told the Funke media group. There are fewer than 4,000 corona cases in Egypt, but secretly even touristy suspect that the virus was only brought there by vacationers.
SCoronavirus has been paralyzing Germany for more than a month. Many companies had already sent their employees home in mid-March, shortly afterwards politics closed shops and restaurants and prohibited all private travel. Even if the restrictions are now loosened somewhat, small and medium-sized shops are reopened, and the first young people are allowed to go to school – there will be no return to normal quickly. And in some areas, economic life could change permanently – for good and for bad. An outlook.
Holidays only where you can come back by train if necessary
In Corona times, the train is superior to the plane: Deutsche Bahn still runs three quarters of the ICE and IC. However, the number of passengers has shrunk to 10 to 15 percent of the normal level. Air traffic, on the other hand, has come to a complete standstill. Will travelers return to old ways after the Corona crisis? Federal Transport Minister Andreas Scheuer (CSU) is convinced that the behavior of business travelers will change fundamentally, so that more appointments will continue to be handled via telephone or video conferences.
Dusseldorf The risk for international bond creditors caused by Corona is given a house number for the first time: corporate bonds totaling more than $ 174 billion, the rating agency Moody’s announced on Wednesday, are currently among the financial stocks threatened by the epidemic.
This figure corresponds to the outstanding bonds of those 25 percent of the large companies rated speculatively (“non-investment grade”) by Moody’s that have lost a large part of their current income due to official orders: above all the non-food retail trade, followed by the Car industry to the leisure and catering trade.
The energy sector is also indirectly affected, which represents a further 2.4 percent of the group bonds issued worldwide. The oil price shock is throwing business on them these days.
“We will also see a contagion effect in other industries,” warns Moody’s manager Jeanine Arnold. Business service providers, chemical companies and raw material suppliers are exposed to high risks as suppliers.
Even the telecommunications sector, which is hardly affected by the corona crisis at the moment, could be affected at different times. There is usually a correlation between sales development and gross national product, observes Moody’s. With the “unprecedented shock” for the economy of the G20 countries, it is expected there, telecommunications revenues will shrink – but with a delay of one year.
Investors have suspected that the biggest failures from the non-food retail sector are to be feared, not only since the protective shield procedures for the Esprit fashion retailer and the Essen-based department store group Karstadt Kaufhof. A look at the latest reports from the rating agency Standard & Poor’s confirm the concern.
In the past two weeks alone, she has classified industry giants such as Fossil, Levi Strauss, the US department store Neiman Marcus and the British fashion retailer in this sector Matalan down – all now with a non-investment grade. S&P even certified the last two with an “CCC” rating, an acute risk of late payment. Even the hotel chains Hilton and Wyndham, which also got a speculative “BB” thanks to Corona at Easter, are still stable in comparison.
For bond artists, the situation has escalated at an immense pace. Among the speculative European bonds – that is, from a rating of “Ba1” downwards – there will be a default of 7.8 percent by the end of the year, Moody’s expects. By March 2021, it could even be eight percent. In the twelve months to March 2020, however, the default rate was just 1.7 percent.
Between early March 2020 and April 9, 22 percent of all companies rated by Moody’s as “speculative” received a devaluation. Companies from retail and the automotive industry in particular were often down several levels.
“In addition, the corona crisis will significantly widen the gap between relatively financially strong and financially weak companies,” warns Moody’s manager Arnold. For example, issuers classified as moderately speculative (“Ba”) only had three devaluations between the beginning of March and April 9 that made up more than one meter, while the poorer credit ratings (“B” and below) gave 33.
Speculative issuers tend to have weaker market positions, are more geographically defined and focus on fewer customers and suppliers, Moody’s explains. In some cases, they would have a higher fixed cost share, which limits operational flexibility. This makes it difficult for them to react to the suddenly and unforeseen restrictions.
Investment grade companies, on the other hand, would typically have better access to sources of finance, often to equity. In addition, there would often be levers to limit the outflow of funds – for example through dividend cuts or the provision of investments.
Such conditions currently count not least for government aid programs. In Britain, for example, the government has made the CCFF program explicitly available to investment grade companies. In other countries, including Germany, the banks have to guarantee part of the government loans. Moody’s believe that this limits the prospects for companies that were considered “speculative” even before the corona crisis. The tour operator Tuiwho received a EUR 1.8 billion KfW loan is an exception here.
More: With Daimler, BMW and ford It hit the first: The corona crisis is causing rating agencies to downgrade car companies. It can go further down.
The Cartel Office approves Tui’s new insurance model. The final assessment by the Bafin is still pending.
Dusseldorf For Europe’s largest travel group Tui rescue comes into view. As the Bundeskartellamt announced on Tuesday, the holiday organizer from Hanover was given permission to set up a joint insurance fund to secure customer money with the competitor DER Touristik. Both groups want to bring 130 million euros in liquidity to him.
In order to reliably secure customer down payments, without the tour operators being allowed to accept no money for vacation packages, the financial regulator Bafin der Tui – as well as the Rewe subsidiary DER Touristik – had issued a final ultimatum by April 28.
After the bankruptcy of Thomas Cook, the Bafin reviewed the old model of the two groups, a mutual insurance company with the name of the German Travel Insurance Association for Mutuals (DRS VVaG), and judged it to be inadequate.
However, the first attempt at rectification failed. A consortium of reinsurers, who initially wanted to provide adequate “coverage” with the DRS, postponed their commitment after Tui stopped doing business with Corona in mid-March and applied for government aid.
Shortly thereafter, the two competitors agreed on a plan B. On March 27, they notified the Bundeskartellamt of their intention to provide the DRS, which until then had only had six million euros in capital, with enough liquidity to be able to use it as its own insurance .
The money now comes in part from a EUR 1.8 billion KfW loan that the state granted to Tui a few days ago via the house banks. Rewe also announced before Easter that it had increased its own credit lines by one billion euros with its house banks.
The final assessment of the new insurance model by Bafin is still pending. With the financial supervision, however, it was revealed that Plan B had already been agreed with Bafin prior to the application to the Federal Cartel Office.
More: Europe’s largest travel company clears the crucial hurdle for the KfW aid loan: the banks agree to the loan from the state development bank.
KfW loans amounting to EUR 20.8 billion had been applied for by Tuesday evening.
Frankfurt Corporations’ applications for corona relief loans to the KfW state development bank are skyrocketing. KfW loans totaling EUR 20.8 billion had been applied for by Tuesday evening – an increase of almost EUR 8.8 billion compared to the previous day, as KfW announced on Wednesday.
The main reason for the strong increase are twelve large applications for over 100 million euros, the total volume of which now amounts to 17.2 (previous day: 12.1) billion euros.
The tourism group TUI announced on Wednesday that it had signed a contract with KfW for a bridging loan of EUR 1.8 billion.