No bailout for you!

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According to Business Insider, hundreds of thousands of tourists have been left stranded after UK Prime Minister Boris Johnson refused to grant the collapsed travel firm Thomas Cook a bailout of £150 million, or about $186 million.

Questions:

  1. Explain Johnson’s idea of a moral hazard.
  2. How large is the Thomas Cook fleet of planes and jets?
  3. How long are some travelers expected to be stranded?
  4. How many U.K. and global employees does Thomas Cook have?
  5. What factors have contributed to the Thomas Cook bankruptcy?

Source:

Bienkov, A. Boris Johnson says he refused £150 million bailout for Thomas Cook because it risked ‘moral hazard’ for other firms. Business Insider, Sep. 23 (Retrievable online at https://www.businessinsider.com/boris-johnson-refused-grant-150-million-bailout-for-thomas-cook-2019-9/

Slotnick, D. Roughly 600,000 travelers are stranded around the world after the British travel provider Thomas Cook declares bankruptcy. Business Insider, September 22 (Retrievable online at https://www.businessinsider.com/thomas-cook-bankrupt-airline-stranded-rescue-2019-9?r=US&IR=T)