TUI signs German bridge loan
KFW and TUI AG confirm the signing of a € 1.8 billion government bridge loan. The loan is guaranteed by the German federal government as part of their Covid-19 support program.
TUI’s current credit facility, the RCF Bank Consortium, supports the KFW loan and adds EUR 1.8 billion to TUI’s existing credit line.
Following the introduction of the international travel restrictions, TUI decided to apply for the KFW loan to mitigate the severe effects of the pandemic until normal business operations can be resumed. Like others, TUI had to temporarily suspend its tour operator business, as well as its flight, hotel and cruise programs.
– Our employees are rightly proud of TUI’s success in recent years, and they may continue to be so in the future. After this crisis, we must bridge this global situation. The German government has worked quickly to save jobs and companies during this special time. We are now preparing for our operations to resume after the Coronavirus crisis, and we believe that people will continue to want to travel and explore other countries and cultures in the future, “says TUI CEO Fritz Joussen.
As reported by Tom Andersson Travel News Norway