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German tourism giant TUI to receive €1.2 billion aid package

Tourism giant TUI and the German government agreed on Wednesday to a second massive aid package, in a sign of how the effects of the coronavirus pandemic are still battering the industry.

Published: 12 August 2020 17:04 CEST

German tourism giant TUI to receive €1.2 billion aid package

A TUI plane parked at Hanover airport on April 8th. Photo: DPA

The Hanover-based company agreed to a €1.2 billion package with German public lender KfW, intended to bolster the firm through its winter 2020/21 season.

The new funds add to the €1.8 billion government loan that the company agreed to in April.

The company previously announced that it would cut 8,000 jobs worldwide to
reduce costs.

READ ALSO: German tourism giant TUI suspends most operations over coronavirus fears

TUI's hotels, flights and cruise ships were empty at the height of worldwide lockdowns and have struggled to reopen as major destinations such as Spain have seen virus infections spike and been subjected to further quarantines.

The additional money means TUI would have credit lines of €2.4 billion, according to the company. The new funds comprise €1.05 billion in loans and €150 million in convertible bonds.

“The €1.2 billion stabilisation package strengthens TUI's position and would provide sufficient liquidity in this volatile market environment,” TUI said in a statement.

CEO Fritz Joussen said the group had already introduced “massive cost
reductions in good time and implemented them quickly and consistently”.

“However, no one knows at present when a vaccine or medication will be
available and what effects the pandemic will have in individual markets in the
coming months,” Joussen added.

“Therefore it is right and important to take further precautions together with the German government.”

TUI announces its third-quarter results on Thursday.

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Could there be a new wave of Covid-19 in Germany this autumn?

More people donning face masks in supermarkets, friends cancelling plans last minute due to getting sick with Covid-19. We might have seen some of those familiar reminders recently that the coronavirus is still around, but could there really be a resurgence of the virus like we experienced during the pandemic years?

According to virologists, the answer seems to be ‘maybe’: since July, the number of people newly infected with Covid-19 has been slowly rising from a very low level.

According to the Robert Koch Institute (RKI), nine people per 100,000 inhabitants became newly infected in Germany last week. A year ago, there were only around 270 reported cases.

Various Corona variants are currently on the loose in the country. According to the RKI, the EG.5 (also called Eris) and XBB.1.16 lines were each detected in the week ending September 3rd with a share of just under 23 percent.

The highly mutated variant BA.2.86 (Pirola), which is currently under observation by the World Health Organisation (WHO), also arrived in the country this week, according to RKI.

High number of unreported case

The RKI epidemiologists also warned about a high number of unreported cases since hardly any testing is done. They pointed out that almost half of all registered sewage treatment plants report an increasing viral load in wastewater tests.

The number of hospital admissions has also increased slightly, but are still a far cry from the occupation rate amid the pandemic. Last week it was two per 100,000 inhabitants. In the intensive care units, only 1.2 percent of all beds are occupied by Covid-19 patients.

Still, a good three-quarters (76.4 percent) of people in Germany have been vaccinated at least twice and thus have basic immunity, reported RKI.

Since Monday, doctors’ offices have been vaccinating with the adapted vaccine from Biontech/Pfizer, available to anyone over 12 years old, with a vaccine for small children set to be released the following week and one for those between 5 and 11 to come out October 2nd.

But Health Minister Karl Lauterbach has so far only recommended that people over 60 and those with pre-existing conditions get vaccinated.

READ ALSO: EXPLAINED: Who should get a Covid jab this autumn in Germany?

“The pandemic is over, the virus remains,” he said. “We cannot predict the course of coming waves of corona, but it is clear that older people and people with pre-existing conditions remain at higher risk of becoming severely ill from Covid-19”

The RKI also recommended that people with a cold voluntarily wear a mask. Anyone exhibiting cough, cold, sore throat or other symptoms of a respiratory illness should voluntarily stay at home for three to five days and take regular corona self-tests.

However, further measures such as contact restrictions are not necessary, he said.

One of many diseases

As of this autumn, Covid-19 could be one of many respiratory diseases. As with influenza, there are no longer absolute infection figures for coronavirus.

Saarbrücken pharmacist Thorsten Lehr told German broadcaster ZDF that self-protection through vaccinations, wearing a mask and getting tested when symptoms appear are prerequisites for surviving the Covid autumn well.

Only a new, more aggressive mutation could completely turn the game around, he added.

On April 7th of this year, Germany removed the last of its over two-year long coronavirus restrictions, including mask-wearing in some public places.

READ ALSO: German doctors recommend Covid-19 self-tests amid new variant

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