TUI AG (LON:TUI), the embattled travel group, is set for its third bailout from the German government during the pandemic, according to reports today.
A part of the new finance package, Germany’s WSF economic stabilisation fund will take a stake in package holiday and airline group, according to Reuters.
Russian billionaire Alexey Mordashov, who is its largest shareholder with a 25% stake is also prepared to put in more money, said the report.
Rivals such as Ryanair have been highly critical of the state support airlines in Europe have received during the COVID-19 crisis with Lufthansa also receiving a €9bn package that gave the German government a 20% stake.
TUI received a €1.8bn bridging loan from German state-owned development bank KfW in April and a further €1.2bn in August that included a convertible portion from WSF.
This third rescue package will comprise a combination of equity and hybrid capital and also loans and guarantees said today's report.
Details of the finance arrangements were discussed at a WSF meeting on Wednesday morning with an announcement expected soon, it added.
TUI has been looking to raise between €1.5bn -1.8bn to cover the loss of business and cash shortfalls caused by the COVID-19 crisis.
Shares in the FTSE250 group in London rose 0.9% to 516p as travel groups were boosted by the Pfizer vaccine news.