Travel company FTI is bankrupt, resulting in trip cancellations effective Tuesday.
FTI is hurriedly making changes to enable clients to cancel trips they've already started, as declared by the company. Right now, this is their utmost focus. A hotline has been established for customers, and on their website, there is a list of frequently asked questions as well as contact information. Early on Monday afternoon, accessing the phone lines was limited due to the massive number of calls.
Those impacted by the bankruptcy and its ramifications are individuals who have reserved services from FTI Touristik. This encompasses the FTI name in Germany, Austria, and the Netherlands as well as offerings like 5vorFlug or the rental car brands DriveFTI and Cars and Camper. Also impacted are customers who have booked FTI services through platforms like Check24 or Ab-In-den-Urlaub. FTI also unveiled that other affiliates in the group will file for bankruptcy in the coming days.
Clients who have secured package tours are shielded by the state-administered Travel Guarantee Fund (DRSF). Travel companies are mandated to contribute to the fund. In the event of a travel provider's insolvency, the fund is responsible for reimbursing advance payments or transporting travelers back home.
FTI experienced financial troubles during the COVID-19 pandemic and received approximately 600 million euros in government support. However, the problems seem to persist. According to Handelsblatt, a "brief liquidity deficiency of several million euros" had developed. Business Insider shares that 75 million euros are absent - the US investor Certares, who injected money into FTI two months ago, did not pay because FTI couldn't show a solid liquidity strategy.
The tourism behemoth revealed that booking figures had "substantially" diverged from projections. "In addition, numerous suppliers requested payment in advance." Hence, the bankruptcy was deemed "legally essential," FTI said in their own words. The company employs approximately 11,000 people.
Talks with the government over the weekend proved unproductive. The government refused to offer additional financial assistance for a variety of reasons - financial, legal, and economic. A representative from the Federal Ministry of Economics remarked that "insignificant refunds can be anticipated from the remaining claims of the federal government." A rep from the Federal Ministry of Finance added that "minor refunds can be anticipated from the remaining claims of the federal government."
