German travel giant FTI touristic's bankruptcy sparks industry concern
German travel agency FTI Touristik has filed for bankruptcy proceedings. It is the third-largest tour operator in Europe. The issue is reported by "Rzeczpospolita".
The application has reached the district court in Munich. Out of the entire FTI Group, only Windrose Finest Travel, which owns the luxury brand Windrose, will continue its operations.
FTI Touristik goes bankrupt
As reported by "Rzeczpospolita", the company's rescue plan failed, despite FTI being taken over in April by Certares, which was supposed to invest £108 million in developing the operator.
"Despite this good news, sales have remained below expectations since then. Furthermore, fearing risk, many suppliers required prepayments, resulting in the company needing more cash to maintain liquidity," reports "Rzeczpospolita". Now, the company - as it claims - is focusing on ensuring care for affected customers. Funds from the Touristic Guarantee Fund are expected to help.
According to "Rz" estimates, the FTI Group is the third-largest tourism concern in Europe in terms of revenue, after TUI Group and Der Touristik. The company employed 11,000 people worldwide.
