The travel industry has been one of the hardest hit by the coronavirus pandemic. The authorities of some European countries have stepped in to support struggling tour companies in this difficult time. Thus, the German government has doubled its aid package for German and multinational tour giant TUI Group. It is the second time the company has received support from the government after the state-owned bank KfW provided it with a 1.8 billion euro loan in April. Now the bank has agreed to extend the existing credit line by 1.05 billion euros. However, such state assistance comes at a price. If required, the federal government can become a co-owner of TUI with up to 9% of shares. This partial state ownership guarantees protection from bankruptcy. The state aid will secure TUI from the risks of insolvency and will help avoid massive layoffs. Still, the company will need to cut 8,000 jobs mainly in its overseas offices.
