Tui Group has gained agreement for a second injection of state aid to see it through the winter.
Europe’s largest travel organisation confirmed it had fulfilled another condition for the provision of a second stabilisation package by the German government.
The support package will give Tui an additional €1.2 billion to give a total of €2 billion
“The package ensures sufficient liquidity to cover the seasonal fluctuations over winter 20/21 and also strengthens the group’s position in the current volatile market environment,” Tui said.
Chief executive Fritz Joussen said: “We continue to operate in a very volatile market environment.
“Travel advice and travel disruptions in our markets and destinations are constantly changing.
“There are still significant restrictions on worldwide travel through Covid-19 and on our business. This makes planning more difficult and requires enormous flexibility from tour operators.
“The increased stabilisation package with government loans will above all secure liquidity during the pandemic.
“We have to bridge this period without any significant turnover and at the same time accelerate the restructuring for the post-Covid-19 period.”
He added: “Tui will become more digital and efficient. In addition, we want to continue to set standards for more sustainability in tourism in the future, even if the current focus has to be on overcoming the crisis.”
Tui received commitment for an initial stabilisation package at the satrt of the pandemic in March with €1.8 billion used to top up the group’s existing bank revolving credit facility.
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