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