Boris admits he said ‘No’ to firm’s £150m bail-out

At least 150,000 British holiday-makers, who face being stranded abroad by the collapse of Thomas Cook, will be bought home, Prime Minister Boris Johnson has pledged.

He was on a plane to New York for the UN General Assembly, moments before the news was confirmed that the 178-year-old travel company was going into administration.

But Mr Johnson said the company’s request for a £150m bail-out from the taxpayer was rejected because of the “moral hazard” it would create for other businesses to fail.

And he questioned whether action needed to be taken to stop the directors of travel companies escaping responsibility for rescuing their customers.

Stranded passengers will have their hotel and new flight bills paid by the UK Government’s Civil Aviation Authority (CAA), funded through payments made by all airlines to a shared emergency fund, as part of their licences to operate.

With Thomas Cook on the brink over last weekend, some Labour politicians and trade unions had also called for comprehensive government aid to save the famous firm, along with its thousands of staff. They pointing to the multi-billion-pound bail-out of the banks a decade ago.

“It is a very difficult situation,” said Mr Johnson. “Obviously, our thoughts are very much with the customers of Thomas Cook, the holiday-makers who now face difficulties getting home.”

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Posted by on Sep 26 2019. Filed under Local News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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