FAQ: What does the FTI insolvency imply for vacationers? | EUROtoday

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Status: 03.06.2024 18:44

The journey group FTI is bancrupt – and simply earlier than the summer time holidays. How did this occur? What does this imply for holidaymakers who’re already on the street? And what rights do prospects have whose journey is now cancelled?

Where can FTI prospects get info?

The insolvency has left tens of hundreds of consumers feeling unsure. The German Travel Insurance Fund (DRSF) is to step in to assist in half. A free hotline has been arrange for these affected: 089/710 45 14 98.

There can also be additional info on the corporate's web site; nonetheless, the positioning was quickly down.

What about holidaymakers who’re already on the street?

The Federal Foreign Office has arrange a disaster workforce to work along with the German Travel Association (DRV) and the German Travel Insurance Fund to make it simpler for holidaymakers to return residence in the event that they get into difficulties overseas.

This time, there will probably be no stranded holidaymakers who’ve to go away their lodges or get caught at airports. The journey insurance coverage fund is meant to stop this.

The fund, organized by the German tourism business and supervised by the Federal Ministry of Justice, was based after the insolvency of the journey group Thomas Cook in September 2019. At the time, the insurance coverage firm had solely reimbursed a fraction of the prices because of a limitation of legal responsibility; the state stepped in with hundreds of thousands.

There is due to this fact a promise to work with the bancrupt tour operator to discover a answer for at the very least all package deal holidaymakers. FTI additionally doesn’t wish to depart particular person travellers who’re presently on the street with out help: “We are currently checking whether they can still use the services they have booked and will get in touch with them shortly,” the corporate stated.

What about booked package deal holidays?

Package excursions from the tour operators FTI, 5vorFlug or BigXtra with departure dates from Monday, June third to Wednesday, June fifth have been cancelled. FTI says it’s legally obliged to cancel these companies. Compensation for the vacation that has already been paid for will probably be paid for by the DFRS.

For package deal excursions with departure from Thursday, June 6, FTI will make each effort to make sure that the journeys happen as deliberate. If this isn’t potential, the DFRS will even present insurance coverage cowl in these instances.

However, by regulation, this fund is simply liable for package deal excursions. Pure resort bookings usually are not coated by the fund as particular person companies.

What is the distinction between a package deal vacation and a person reserving?

A package deal vacation consists of at the very least one flight and lodging, that are booked collectively as a package deal, generally with different extras similar to a rental automotive. If lodging, flight, rental automotive and different parts are booked individually, the journey insurance coverage fund will not be accountable.

According to the assertion, FTI is looking for options right here too, however doesn’t wish to promise this. Trips which have already begun must be accomplished as deliberate if potential. However, it’s essential to contact the hotline if FTI doesn’t contact these affected instantly.

Can journeys be rebooked?

After a cancellation by FTI, it isn’t potential to rebook the journey with one other tour operator. For most of these affected, which means that they should e-book and pay for the holiday booked with FTI once more with one other supplier and hope for monetary compensation from the journey insurance coverage fund.

At FTI itself, these questions are nonetheless largely unanswered. In the afternoon, the Munich District Court appointed lawyer Axel Bierbach as provisional insolvency administrator. He should now additionally take care of these questions.

Which different journey manufacturers are affected?

Generally, companies booked with the manufacturers FTI, 5vorFlug, BigXtra and the rental automobile manufacturers DriveFTI and Cars and Camper are affected. The chances are high good if the reserving was made with FTI, however the precise organizer is one other supplier, for instance TUI or DER Touristik.

In these instances, FTI acted solely as an middleman.

Why did FTI go bankrupt?

The FTI Group, with round 11,000 workers, bought into bother through the Corona pandemic. The firm needed to be supported with state funds and obtained a complete of 595 million euros from the Economic Stabilization Fund (WSF). According to media experiences, FTI has up to now solely repaid a mid-double-digit million sum of this.

Most not too long ago, a consortium led by the US monetary investor Certares wished to take over the FTI Group for one euro and inject 125 million euros of recent capital into the corporate. However, the competitors authorities nonetheless needed to approve the deal for the takeover to take impact.

This interval was apparently FTI's downfall. Despite the deliberate takeover, many unsettled lodges initially didn’t wish to supply FTI any capability, in accordance with business sources. As a end result, the vary of companies provided by the third-largest European journey group after TUI and DER Touristik shrank, and the corporate took in much less cash than hoped.

In addition, quite a few suppliers insisted on advance cost, it was reported. “As a result, there was an increased need for liquidity, which could no longer be bridged by the time the investor process was closed,” FTI stated. According to Handelsblatt, a short-term funding hole of a double-digit million quantity appeared at FTI.

Is FTI an remoted case or typical for the journey business?

The scenario at FTI is actually not comparable with that of the listed massive company TUI or with that of DER Touristik, which is backed by the financially sturdy REWE Group. In addition, the journey business has now recovered effectively from the implications of the corona pandemic and is within the black.

In this respect, the particular scenario on the Munich-based occasion organizer could also be thought of a particular case that can not be transferred to your entire business.

Why is there no additional authorities help?

The federal authorities rejects new state help for the journey group.

A spokesman for the Federal Ministry of Economics stated there have been budgetary, authorized and financial the explanation why no additional help had been offered past the “very large amount of aid”.