Thomas Cook: Boris Johnson defends govt decision not to step in

Johnson, speaking to reporters in New York, said while it was a “very difficult situation”, any form of bailout would create “a moral hazard” when it came to any future commercial difficulties faced by similar companies.

The PM confirmed a request was made for “subvention” of around £150 million. “Clearly, that is a lot of taxpayers’ money,” said Johnson, who also hinted at exploring how bankruptcy protections could be reformed.

“We need to look at ways tour operators – one way or another – can protect themselves from such bankruptcies in the future,” said Johnson. “Clearly the systems we have in place [must] make sure companies such as Monarch or Thomas Cook don’t in the end come to the taxpayer for help.”

Johnson said the state, “one way or another”, would likely have to step in in future, adding one solution might be to incentivise company directors to “sort such matters out”.

The DfT said: “Thomas Cook’s financial problems are substantial, long-standing and well-documented; government financial assistance would not have resolved them.”