The announcement by Germany’s FTI Group, Europe’s third-largest travel company, that it would file for bankruptcy and cancel or scale back trips that have yet to start comes at a critical time for Greek tourism as the main summer season gets underway.
FTI brings hundreds of thousands of German and other tourists to Greece, mainly to the islands of Crete, Rhodes, Kos and Corfu.
It is estimated that there are currently 7,500 travellers who have booked holidays in Greece through FTI.
Kathimerini understands that the group has paid out the majority of last season’s holiday packages in recent months, as well as an advance payment for May, after a consortium of investors came on board to support the group, which has been in financial difficulty since the Covid-19 pandemic.
“For those dealing with FTI, the signs were already clear in the past two months. To fill the gap left by FTI, hoteliers took the opportunity to deal with other travel agencies, sell directly or through online platforms,” Grigoris Tasios, former president of the Greek Hotels Federation, told Kathimerini newspaper.
However, around 300 hotels in Greece are owed around 1.8 million euros by the FTI for bookings for 2023.
Announcing its decision to file for bankruptcy, the airline said it was working to ensure that trips that had already started were completed as planned, but that “trips that have not yet started will likely be impossible or only partially possible from Tuesday.”
A support website and hotline have been set up for affected customers.
The German foreign ministry said the tourism industry and travel insurance funds would be responsible for repatriating and assisting affected tourists, but would also provide consular assistance if necessary to ensure a safe return.
The company filed for bankruptcy at Munich regional court on Monday as bookings continued to fall after a recent takeover bid of 1 euro.
In addition to the drop in orders, several suppliers requested advance payments that FTI could no longer afford.
Germany’s Economy Ministry called the collapse “tragic” and added that additional support was not available.
FTI employs 11,000 people worldwide and offers tours to more than 40 destinations worldwide through 10,000 affiliated agencies in Germany. [Kathimerini/Reuters/AP/AMNA]
