TUI Signs €1.8bn German Bridging Loan to Cushion Effects of Covid-19

Photo source: TUI Group

TUI AG on Wednesday announced that it signed a state-aid bridging loan for 1.8 billion euros with the KfW, Germany’s state-owned development bank. The company had received approval from the German federal government for the loan on March 27 as part of the coronavirus (Covid-19) state support programme.

The loan is expected to cushion the unprecedented effects of the coronavirus (Covid-19) pandemic until the travel giant resumes normal business operations.

“The German Government has acted quickly to support jobs and companies during these exceptional times,” said TUI CEO Fritz Joussen.

TUI, like other companies, temporarily suspended its tour operator, flight, hotel and cruise programmes. TUI had started off 2020 with extremely strong bookings, the company said in an announcement.

“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,” Joussen said.