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The bankruptcy of German tourism group FTI affects thousands of tourists

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In mid-April, FTI had announced that it was going to be acquired by the American investment company Certares

Επηρεαζει χιλι δευρσηχεκογεμ νιού τουριστικού ομΙλου FTI

The bankruptcy of Germany's third largest tourism group, FTI, negatively affects thousands of tourists.

According to the German News Agency (dpa), around 65,000 travelers are currently abroad through FTI, while the The German government is not planning an operation to repatriate them.

The Ministry of Foreign Affairs, however, has created a special column on its website with information on the issues concerning the group's travelers.

The FTI tourism group, based in Munich, employed 11,000 workers. It has long been known that he was facing financial difficulties.

In mid-April, FTI had announced that it was going to be acquired by the American investment company Certares, at the symbolic price of one euro, at which point speculation began about what would happen to the group's huge debts, given that the company had taken into account through coronavirus 595 million euros from the Economic Stabilization Fund.

There were rumours, according to German media, of 80-90% debt write-offs, which other companies in the industry saw as damaging to competition. These rumors, however, were not confirmed by either the FTI group or the German Ministry of Finance, although Ministry circles hinted that the state is willing to receive only a small part of the money it has allocated to the company.

< p>The newspaper Süddeutsche Zeitung notes that what happens next with the group's debts, and thus whether the German taxpayer will be affected, will depend on the further bankruptcy proceedings and that the group's bankruptcy is due to the fact that, due to serious financial problems – already before the coronavirus pandemic – it did not have the necessary resources to meet its obligations until the acquisition by the American investment company Certares was completed.

For this reason, last weekend FTI addressed a request for financial support from the state, however the Ministry of Finance and the Ministry of Economy of Germany, after examining the request, came to the conclusion that there are no necessary conditions for such a thing.

The travel agencies have already been very careful with the offer of trips by FTI, while the hotels in the tourist destinations have also recently been reluctant to cooperate with the group, as it did not meet its financial obligations on time.

After the latest developments, many customers who are no longer able to travel through FTI, they can choose a last-minute offer from another company, and they will be refunded within the next few weeks the amount they have paid.

Source: www.kathimerini.com.cy

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