According to information from the FAZ, the federal government is in principle ready to give TUI more money – and probably not just borrowed. Something similar is on the way at Thyssen-Krupp. What will the conditions be?
Dhe Canaries stayed with the travel company TUI. Holidaymakers can still go there, but from this Sunday on only with a negative corona test. Elsewhere, it looks even worse for Europe’s largest tourism provider. Travel warnings, requirements and customers’ fear of the virus ensure that TUI is running out of money again. The company has already received around 3 billion euros in loans from the state, and further financial aid is now being negotiated. The talk is of up to 1.8 billion euros. The industrial group Thyssen-Krupp is also hoping for a capital injection from the state.
According to information from the FAZ, in the case of TUI, the federal government is in principle ready to provide the group with around 70,000 employees with fresh money. According to reports, there are still discussions between the SPD-led Ministry of Finance and the CDU-led economic department as to whether the federal government should participate directly in TUI or whether new loans are sufficient. Due to the company’s already high debt, a government entry is likely.
The opposition is following this with eagle eyes – and is calling for a fundamental rethink in the rescue policy. “The federal government finally needs a real participation strategy that describes when and how large loans and recapitalization measures are granted,” said Green Party leader Anton Hofreiter of the FAZ. The structural change will be delayed. “State aid for TUI only makes sense if it is linked to clear guidelines on climate and employee protection. The exclusion of redundancies for operational reasons must be agreed at least for a transition period. ”Hofreiter also calls for an exchange of aircraft fleets and requirements for low-carbon travel.
The travel company has already launched a program that plans to cut 8,000 jobs. When the federal government got on board with Lufthansa at the end of May, a discussion broke out about possible conditions for state aid. The SPD rejected the planned job cuts, the Greens wanted the federally supported group to be allowed to offer fewer domestic flights. Federal Minister of Economics Peter Altmaier (CDU) rejected these demands. The federal government does not interfere in business policy. The aim must be for companies to quickly become profitable again, he said.
According to an internal list by the Federal Ministry of Economics and the Federal Ministry of Finance, companies in Germany have so far submitted a good 95,000 applications for loans from the state-owned KfW Bank, with a volume of almost 58 billion euros. The Economic Stabilization Fund (WSF) has so far supported five companies with 6.5 billion euros, the majority of which is accounted for by the silent partnership and the twenty percent stake in Lufthansa.
“The federal government could have bought the entire TUI for the aid now.”
TUI received its first aid loan of 1.8 billion euros from KfW in April. The credit line was later increased by 1.05 billion euros. In addition, the federal government signed a convertible bond for 150 million euros, which, to put it simply, it can exchange for up to 9 percent of the shares. The third package has been negotiated since October. The reason is that after the brief recovery in business in early summer, the crisis has returned with full force. For the current first quarter of the 2020/21 financial year (October to September), TUI expects a monthly outflow of funds “in the low to mid three-digit million range”.