LONDON (AP) — The Latest on the collapse of British tour company Thomas Cook (all times local):
British Prime Minister Boris Johnson says the government was right not to bail out tour company Thomas Cook, arguing that travel firms should do more to ensure they don’t collapse.
The 178-year-old tour operator ceased trading Monday after failing to secure 200 million pounds ($250 million) in rescue funding.
Johnson said the government would help repatriate 150,000 stranded British travelers. But he said bailing out the company would have established “a moral hazard” because other firms might later expect the same treatment.
Johnson said, “We need to look at ways in which tour operators one way or another can protect themselves from such bankruptcies in future.”
He added, “One is driven to reflect on whether the directors of these companies are properly incentivized to sort such matters out.”
British tour operator Thomas Cook has ceased trading and all its hundreds of thousands of bookings canceled after the firm failed to secure rescue funding.
The Civil Aviation Authority announced the film’s collapse early Monday. More than 600,000 vacationers had booked through the company.
CAA said 150,000 are British customers now abroad who will have to be repatriated.
The group’s four airlines will be grounded and its 21,000 employees in 16 countries, including 9,000 in the UK, will be left unemployed.
The debt-laden company had said Friday it was seeking 200 million pounds ($250 million) to avoid going bust, was in talks with shareholders and creditors to stave off failure.