Travel security after the FTI bankruptcy: Crisis expert Khardani intervenes!

Travel security after the FTI bankruptcy: Crisis expert Khardani intervenes!

The German Travel Insurance Fund (DRSF) is facing massive criticism following the insolvency of the travel group FTI. FTI, which filed for bankruptcy in June 2024 and has debts of one billion euros, leaves around 350,000 creditors to file their claims. The company is wound up, with assets sold to satisfy creditors. Package travelers, around 175,000 in number, are particularly affected by the bankruptcy because they had already made payments for their trips. These travelers should receive reimbursements via the DRSF, with around 90 percent of the affected customers relying on processing via the fund. Further company liquidations could take years, according to insolvency administrator Axel Bierbach.

In order to respond to the challenges and the criticized communication policy, the DRSF has hired Christin Khardani as Head of Emergency Planning & Communication. Khardani, who began her new role in May, brings valuable crisis management experience, having worked at FTI from 2015 to 2021. DRSF Managing Director Ali Arnaout emphasizes the need for fast, transparent and reliable information, especially in crisis situations. Before moving to DRSF, Khardani was a research assistant at the University of Munich for almost four years and worked on her dissertation on crisis management in destinations.

Criticism of the DRSF and its role

Criticism of the DRSF's communication policy comes particularly from tour operators who complain about high contributions to the fund. These challenges are now being addressed by Khardani, who leads strategic crisis preparation and management as well as corporate communications. The need to communicate effectively at critical times such as these is critical to restoring trust in the Fund.

FTI's bankruptcy not only impacts creditors, but also thousands of employees. Of 1,400 employees in Germany, around 700 receive layoffs. In addition, around 2,500 hotels, travel agencies, airlines and banks are also affected. The state Economic Stabilization Fund (WSF) loaned FTI €600 million during the coronavirus pandemic, further complicating the situation. Overall, it remains unclear how much money the creditors will ultimately receive, as the company's winding down is expected to take a long time.

Rival companies such as TUI and DERTOUR have already started taking over FTI customers, while new owners have been found for some FTI companies, including Windrose and 5vorFlug. A creditors' meeting, which is intended to help clarify further steps, will take place on November 20th in Munich.