Economy

TUI: EU Commission approves government aid worth billions – NewsABC.net

Tui is offering mini cruises for a weekend during the corona pandemic.

Shutterstock

The EU competition watchdogs have approved German state aid of up to 1.25 billion euros for the travel group Tui, which has been hard hit by the Corona crisis. The EU Commission announced on Monday in Brussels.

“Like many other tourism companies, Tui was badly hit by the corona crisis,” said the EU Commission Vice President responsible, Margrethe Vestager. According to the EU Commission, German state aid is “necessary, suitable and appropriate” to remedy a “considerable disruption in the economic life of a member state”.

Vestager emphasized that the state would receive “adequate remuneration for the risk borne by taxpayers and that the support would be linked to conditions in order to limit possible distortions of competition”.

The state aid for the world’s largest travel company Tui is part of a larger support package in which private investors are also involved. “I welcome the fact that private investors are also participating in the planned recapitalization. This will reduce the need for state aid and help Tui recover, ”Vestager said.

Tui had already benefited from further government aid in the course of the year. In addition to air traffic and gastronomy, the tourism industry is particularly hard hit by the decline in demand during the pandemic.

According to the EU Commission, the federal government’s 1.25 billion euros include a silent participation of 420 million euros, which can be converted into Tui’s equity. The package also includes a non-convertible silent participation of up to 680 million euros and a convertible bond with warrants of 150 million euros.

Tags

Related Articles

Back to top button
Close
Close