Karl Markgraf (right) has been the CEO of the FTI Group since July 2023. Sven Hoppe/Rene Ruprecht/Stefan Puchner/picture alliance/dpa/Graphic: Dominik Schmitt/BI
The FTI Group continues to negotiate the entry of a new investor. At the same time, Europe’s third largest tour operator must reassure a market that sees FTI as a problem child.
Until now, a haircut was considered the biggest obstacle to an investor deal. Research by Business Insider now shows what an alternative could be.
In the tourism industry there is speculation not only about a new donor, but also about the possible role of a competitor to FTI.
Karl Markgraf had to go on the offensive. The head of the FTI Group has spoken to a number of travel agency representatives in video conferences in recent weeks. He campaigned for trust in Europe’s third largest tour operator. Business figures from the year before last shocked the tourism industry in February. Because the heavily indebted group of companies from Munich is considered a problem child despite its size. The “Bild” newspaper asked: “Should I book a vacation with FTI now?”
The headlines set off a chain reaction that Markgraf is trying to stop. Holidaymakers expressed concern on social media, travel agencies booked with other providers to be on the safe side, and hoteliers are said to have increasingly demanded advance payment from the FTI Group. And all of this while the travel company is desperately looking for a new investor. According to participants, the FTI boss also talked to travel agencies about the discussions with an interested party. Will that calm a nervous market?
Research by Business Insider shows how the future of the tourism giant is being fought behind the scenes. Above all, this involves enormous liabilities for the German taxpayer. FTI had to be rescued during the corona pandemic with state aid worth 595 million euros. The mountain of debt is considered the biggest obstacle to an investor deal. What’s even more interesting is which scenarios are secretly played out in order to make a conclusion possible.
The FTI Group, which includes brands such as FTI Touristik, the last-minute provider 5 vor Flug, BigXtra and the shopping channel Sonnenklar.TV, was only able to ensure its solvency in 2022 through government funds, shareholder contributions and bank loans. This can be found in the annual financial statements. After all: In the last financial year, the group is said to have increased its sales again to 4.1 billion euros – those would be numbers like before Corona.