German bank KfW and cruise line operator TUI have signed a German Federal Government backed state aid bridging loan amounting to €1.8 bill.
This loan was agreed by the Government on 27th March, as part of the COVID-19 state support programme. TUI’s current revolving credit facility banking consortium supports the KfW loan and the addition of the extra cash into TUI’s existing credit line, the company said.
Following 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. Similar to other tourist organisations, TUI had to temporarily suspend its tour operator, flight, hotel and cruise programmes.
In a statement, TUI said it was a very healthy company that was economically successful before the crisis – it has a strong strategic positioning, structure and substance. The current financial year had started off with extremely strong bookings.
TUI CEO, Fritz Joussen, said: “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.”