It seems to me that rather than allowing TC to collapse leaving 160,000 people stranded, and then pay other airlines to recover all these people, the CAA should provide the financial support and guarantees to enable TC to continue operating the flights needed to do that, including paying over the amounts held by them for hotels and transfers.
It's almost a no-brainer that the cost of doing that would be far less than paying other carriers to operate - I dunno - 700 - 800 charter flights between the resorts and the UK, to say nothing of picking up hotel and transfer costs.
But what do I know? (OK, I do know that the CAA are not financial wizards.).