BRUSSELS (Reuters) – EU competition regulators on Friday approved a 750-million-euro ($888 million) German scheme for a fund to reimburse travellers affected by insolvent package travel organisers due to COVID-19.
Germany wants to set up a Travel Insolvency Fund, financed by contributions from package travel organisers, which will be operational from Nov. 1.
The state guarantee will ensure that sufficient resources are available to refund consumers for cancelled travel services, in cases where package travel organisers become insolvent and available assets in the Fund are insufficient to cover the consumer refunds.
The European Commission said the German scheme complies with the bloc’s state aid rules.
($1 = 0.8445 euros)
(Reporting by Foo Yun Chee)
