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Lars Thykier

Distressed travel companies get more help: The state will now cover bankruptcies

Lars Thykier

There are good trends in the new deal, but that’s far from enough, the industry believes.

A broad majority in the Folketing now meets the travel industry with a central wish that has so far led to fierce criticism from the travel companies during the corona crisis.

During the crisis, the travel companies had the opportunity to draw on a loan from the state to repay customers who had been canceled package tour.

Of course, that loan must be repaid, but if the individual travel company cannot, then all travel companies in Rejsegarantifonden was responsible for the loan and thereby help to repay the money.

It has now been redone so that the state is liable for all loans made from April 14 through August 31. That is, the state pays the entire bill if a company goes bankruptcy by December 31, 2021.

According to the new agreement ‘Further assistance to the travel industry in the light of the corona crisis’, which states that the state has set aside DKK 300 million to cover any bankruptcies.

Precisely this was one of the cardinal points, as a number of travel companies threatened to resign earlier in the crisis. Rejsegarantifonden.

The problem with the aid package is that we as business must be jointly and severally liable to one another. Although I do not get a loan, I have to pay back for my competitors. This is very difficult to do in the current market, said Bjarke Hansen of Primo Tours .

State coverage of bankruptcies in industry is not the only initiative that has been agreed today.

The travel companies can now draw on loans from the state of DKK 2.25 billion compared to before 1.5 billion, and the loans can be taken until 31 August.

Business Minister Simon Kollerup (S) says about the agreement:

– The package travel industry is one of the professions that was first hit by the corona crisis, and unfortunately it is also one of the professions that will feel the longest-lasting effects. For most of us, we must probably spend the summer holidays in Denmark this year, and that is pressing industry even more, he says.

Good beats, but …
Although there are several good things in the new deal, it is not a jubilant travel industry that looks forward to the next few months.

This is stated by Lars Thykier, director of the Danish Travel Agency Association.

There are essential things that still need to be decided, the director believes.

– It is in particular the discussion about who has to pay for the losses that have come from providing such different travel guides, says Lars Thykier, pointing out that new travel guides came on May 29, which was sharply corrected again last week .

Source: dr.dk

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