FTI Touristik GmbH, Europe's third-largest tour operator, has filed for insolvency despite receiving millions in government aid.

The insolvency leaves the government with an estimated 510 million euros in unpaid assistance.

FTI's collapse marks a significant failure in the government's efforts to support struggling businesses during the pandemic.

Travel plans for many, including a Vienna family who had booked a 6000 euro trip to Turkey, have been disrupted.

Customers who booked package holidays through FTI Group are protected by the German Travel Security Fund and will receive refunds.

Individual bookings are at risk of losing both the booking and money.

Brands under the FTI Group, such as 5vorFlug and BigXtra GmbH, are also impacted by the insolvency.

The government's decision to deny further aid to FTI reflects the challenges in balancing financial support with sustainable outcomes in the business sector.

The broader impact on the European tourism market remains uncertain, with immediate repercussions noted in Cyprus and Greece.

Travelers are advised to stay updated for further developments on the situation and its effects on the travel industry.