A court in Munich has opened insolvency proceedings for the FTI Touristik group which failed in June, with administrator Axel Bierbach suggesting he has realised significant funds.
However, the DRSF German travel security fund, equivalent of the Air Travel Trust fund, only began paying refunds for cancelled holidays to FTI customers last month. Many have been unable to rebook holidays this summer as a result.
Tui Group chief executive Sebastian Ebel hit out the fund over the time it has taken to reimburse customers, saying: “It’s not really understandable. It took an enormous time for the DSF to pay [FTI] customers.”
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He said the delay meant many Germans planning holidays had been unable to travel this summer.
Speaking on August 14, he said: “Customers are still waiting for refunds. Many have not received the money so could not go on holiday. Probably there is pent-up demand from FTI customers for next year.”
Ebel noted: “FTI was in a different market segment to Tui. We are more four to five-star. FTI was in a more difficult segment. Very often these people were not able to book and pay a second time. People booked with FTI have hardly been able to travel this year.”
Up to 250,000 FTI customers are owed refunds expected to total more than €400 million. Bierbach has identified 350,000 creditors in total, most of them consumers but including up to 3,000 suppliers. The German government’s Federal Economic Stabilisation Fund (WSF) and FTI’s former banks have also filed large claims.
More than 700 employees now face redundancy despite the administrator securing the sales of several FTI brands, including Raiffeisen Touristik Group, travel agency chain TVG, service centre Erf24, luxury tour operator Windrose Finest Travel and lastminute holidays brand 5vorFlug.
Former FTI-owned UK accommodation provider Youtravel remains in limbo, having cancelled all bookings up to the end of October. Management at the company continue to hope to resume trading from November with bookings from then still “active”.
Youtravel issued a statement in July saying management remained in “advanced talks to secure our future”, with a source explaining: “It’s taking longer than expected due to the complexity of the group.”
However, there has been no update since July 18 despite the court insolvency process in Germany now underway and Youtravel has not responded to further requests for comment.