Travel industry - FTI insolvency administrator presents fast resolution for holidaymakers
Following the demise of the third most significant European travel agency, it's crucial to aid the roughly 60,000 customers journeying with FTI. The acting insolvency administrator, Axel Bierbach, explained, "We're putting in relentless efforts to ensure these tourists can finish their vacations and return home securely and systematically." This process is progressing in a structured and mostly orderly fashion. Staff representing the company remain accessible for FTI clients experiencing issues during their travel; the organization set up a hotline for consumer queries.
The journeys of FTI clients eager to depart in the coming days had to be stopped, according to Bierbach, as the smooth progression at their final destinations couldn't be assured. This applies to all trips scheduled through FTI Touristik GmbH up to and including Monday, June 10.
Exploring alternatives for trips after June 10
Currently, efforts are underway to find alternatives for trips past that date. Bierbach stated, "We're examining all opportunities to have the booked tours executed as planned by other providers at the earliest feasible time." Meetings with these potential providers are already taking place. "We're in search of a solution for trips beginning on or around July 1."
He confirmed that all client payments for FTI Touristik GmbH bundle tours were insured by the German Travel Security Fund (DRSF). Thus, clients need not fear losing funds due to the company's insolvency. They will even receive refunds for any prepaid amounts if it's impossible to conduct these excursions. According to reports, package tour bookings accounted for over 90% of FTI's business.
Employee salaries insured until 2024
Bierbach intends to update the affected workers about the current scenario and their next steps imminently. The wages and salaries of the about 843 staff at this insolvent enterprise are covered until the end of May 2024. From June to the end of August 2024, these employees will be covered by insolvency insurance.
Bierbach is exploring all potential alternatives to determine if there are any possibilities for the continuation of the insolvent business, including selling off segments in Germany and abroad. The FTI Touristik GmbH, the parent company of the FTI Group, filed for bankruptcy at the Munich Regional Court on Monday. The company also intends to submit respective applications for other group entities. The group employs around 11,000 individuals.
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- The demise of the travel agency in question is a significant issue not just for Germany, but also for the broader European tourism industry.
- Affected customers traveling with FTI Touristik GmbH, a subsidiary of the insolvent FTI Group, can rest assured that their payments are insured by the German Travel Security Fund.
- The insolvency administrator, Axel Bierbach, is actively seeking solutions to resume tours after June 10, potentially partnering with other providers.
