Tui secures funding package amid continuing 'volatility' - TravelMole


Tui secures funding package amid continuing ‘volatility’

Tuesday, 03 Dec, 2020 0

Tui has secured a €1.8 billion funding package as it seeks to weather the pandemic storm until travel begins to resume.

The German operator said it needed the cash injection following increased restrictions placed on travel.

It will ‘bridge the gap’ if the pandemic persists in 2021 and ‘provide sufficient liquidity reserves in this volatile market environment’, Tui said.

"It also balances out the presumed travel restrictions until the beginning of the 2021 summer season," the company said in a statement.  "The package became necessary due to the increasing travel restrictions caused by the rising number of infections and the associated more short-term booking behaviour of some customers."

More positively, Tui added that the imminent availability of Covid vaccines will significantly reduce travel restrictions, and further improve its working capital and liquidity.

"Holidays continue to be a high priority for our customers, and we continue to work on different demand scenarios for the coming seasons," it said.

Tui Chief Executive Fritz Joussen said: "Before the Corona Pandemic, TUI was a very healthy company. The market is intact, the demand is there. But we have not been able to generate any significant revenues since March.

"Our integrated business model allows us to react very flexibly to short-term changes in the pandemic situation, just as we successfully ramped up our travel programme for a few weeks in July after the first wave.

"People want to travel, tourism remains a growth industry and an important sector for stabilising the southern euro area.

"The financial package provides the security to look consistently ahead and to prepare the Group strategically and structurally for the time after the pandemic."



 



Most Read

Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns

James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel

Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination

Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics

Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy

Bubba O’Keefe on Clarksdale’s Vibrant Music Scene

Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee

Craig Ray and the Expansion of the Blues Trail

Presenting Mississippi’s Cultural Trails with Katie Coats

Robert Terrell: A Journey Through BB King’s Influence

Rochelle Hicks: Celebrating Mississippi’s Musical Legacy

Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
TRAINING & COMPETITION

Our emails to you has bounced travelmole.com Or You can change your email from your profile Setting Section

Your region selection will be saved in your cookie for future visits. Please enable your cookie for TravelMole.com so this dialog box will not come up again.

Price Based Country test mode enabled for testing United States (US). You should do tests on private browsing mode. Browse in private with Firefox, Chrome and Safari