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TUI plans to cut about 8,000 jobs due to the business downturn caused by the crown pandemic. The travel company should emerge stronger from the crisis, said TUI chief Fritz Joussen. “That requires cuts.” Specifically, about one in ten of the more than 70,000 jobs worldwide will be cut. Administrative costs will be reduced by 30 percent and investments will be reduced.
In the first five months of the business year, from October to February, sales increased by six percent to six billion euros. However, the operating result, adjusted for one-off effects, was less than € 240 million in the winter season, which was an improvement of a fifth compared to the previous year. TUI had to suspend the travel program in mid-March.
Tourism is one of the sectors most seriously affected by the crisis. Therefore, TUI has also used a € 1.8 billion state-guaranteed bridge loan in Germany. However, the world’s largest tour operator is preparing to reopen its hotels in Europe. “The season starts later, but it could take longer.”
Recommendations will be published
Economic Commissioner Paolo Gentiloni also gives the group hope. Shortly before the EU Commission’s deliberations on border controls and the tourism sector, he was confident that the European holiday season would take place in the summer. “We will definitely have a tourist season in the summer, but with security measures and restrictions,” the Italian told the “Süddeutsche Zeitung.” The Commission plans to issue recommendations later today on the gradual lifting of border controls introduced due to the crown pandemic.
According to a draft decision, the restrictions should initially be abolished in areas where there is comparably favorable development in the number of crown cases on both sides of the border. Therefore, there should be no discrimination based on the nationality of the travelers. The Commission also plans to adopt a series of guidelines and recommendations for virus protection movements in tourism and travel. This includes safety distances in hotels, restaurants, and transportation, such as trains and planes.
A group of conservative MEPs called on Commission President Ursula von der Leyen to end all border controls between EU countries after Friday. The 18 members of the PPE Group also wrote to von der Leyen, who was available to the AFP news agency, that member states would also have to lift their quarantine regulations for incoming EU citizens.
Austria wants to open
In the early stages of the pandemic, border controls were “appropriate and justified” due to the wide variation in the virus across states, according to the letter. Meanwhile, however, the infection process is at a similar level across the EU. “What is essentially the same should not be treated in a substantially different way,” the MPs emphasize. Therefore, loosening of crown restrictions within member states must go hand in hand with “comparable external flexibility at the borders”.
In Germany, Federal Interior Minister Horst Seehofer (CSU) ordered the extension of border controls to Austria, Switzerland, France, Luxembourg and Denmark last week. Only those who can show a valid reason, such as those who travel daily, can enter the country. Seehofer’s order is only limited until next Friday. In recent days, demands on the minister to relax or abolish border controls have increased.
According to the Austrian news agency APA, the closed border between Germany and Austria will fully open again on June 15. Starting this Friday, there will only be random border checks, the Chancellor’s Office in Vienna confirmed Wednesday at the APA. Austrian Chancellor Sebastian Kurz (ÖVP) had called Merkel on Tuesday. The Federal Government wants to discuss new steps at its meeting on Wednesday.
The Austrian tourism industry is highly dependent on German vacationers. Above all, however, the industry pushed for clarity regarding the summer season. He referred to regular German customer reservations, making it difficult for new Austrian guests to make promises.
