The Rewe subsidiary DER Touristik wants to take over FTI.
(Photo: IMAGO/Michael Gstettenbauer)
Dusseldorf Rewe’s takeover bid for the financially troubled holiday operator FTI puts the German state in a dilemma that it could have guessed three years ago. Because the deal should only come about if creditors of FTI waive about half of their claims. The taxpayers, to whom the company owes hundreds of millions, are therefore also in demand.
Only: If Berlin refuses to partially waive the debts accumulated by the state for the travel company and its majority shareholder Samih Sawiris, an Egyptian billionaire, it could become much more expensive for the tax authorities.
Should Germany’s largest family-run travel group get into financial difficulties due to its high level of debt, it would not only be the subordinated loans and silent participations of the state economic stabilization fund (WSF) that would be in the fire. The federal government and the state of Bavaria would then probably also have to provide additional guarantees in the three-digit million range.
In fact, from the point of view of the federal and state governments, this speaks in favor of writing off part of the state loans granted during Corona, as was the case with the Condor holiday airline. In view of the narrow margins in the package travel industry, industry experts considered it unlikely that they would ever be repaid in full when the loan was granted from mid-2020.
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At first glance, there is actually a good deal to be said for a debt haircut at the taxpayer’s expense. A second look reveals that there is another problem. After a partial debt waiver for the Munich tour operator, which Rewe made a condition for the takeover according to Handelsblatt information, competitors are likely to come forward with very similar demands.
“After all, the same rights apply to everyone”
Market leader Tui also took billions in state funds during the pandemic. The fact that part of it has now been repaid should probably annoy the group in Hanover in retrospect – if the state grants rival FTI a haircut. It is doubtful whether Tui CEO Sebastian Ebel will still be interested in paying his remaining debt to the state. After all, everyone has the same rights.
>> Read here: Rewe subsidiary DER Touristik wants to take over FTI
However, such a debt relief would meet with vehement protests from tour operators in particular who, despite months of lockdowns and loss of income during the pandemic, waived state emergency loans, including the family-run providers Alltours and Schauinsland Reisen.
They would have to fear that the competitors, who were endowed with state gifts of money, would receive an unfair advantage, particularly in the price war. If it is not compensated, they may have to ask the state for help themselves at some point.
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