Zoom goes bust
Published: 29/08/2008 - Filed under: News »
Canadian carrier Zoom is the latest airline to fall victim to the high cost of fuel and “‘acutely difficult’ trading conditions within the aviation industry”.
Zoom suspended all operations last night (Thursday August 21), and is advising all customers holding tickets for which payments have been made, to approach their debit or credit card company for a refund.
Hugh and John Boyle, the founders of Zoom, said yesterday: “We deeply regret the fact that we have been forced to suspend all Zoom operations. It is a tragic day for our passengers and more than 600 staff.
“We are desperately sorry for the inconvenience and disappointment that this will cause passengers and those who have booked flights.
“We have done everything we can to support the airline and left no stone unturned to secure a re-financing package that would have kept our aircraft flying. Even late today we believed we had secured a new investment package to ensure future operations but the actions of creditors meant we could not continue flying. Having been unable to complete the investment package the directors of Zoom had no option but to instigate administration proceedings.
“The suspension of operations is a result of the exceptionally difficult trading conditions which have affected all airlines over the last 12 months. We have worked hard over the last seven years to build up a successful business but have incurred losses in the current year due to the unprecedented increase in the price of aviation fuel and the economic climate. The increase in the price of oil has added around $50 million to our annual operating costs and we could not recover that from passengers who had already booked their flights.
“We would like to thank the many thousands of passengers who chose to travel with Zoom during the last seven years and efforts of the airline’s staff. We are extremely sorry for today’s unavoidable actions.”
The airline has posted details on its website of alternative carriers serving former Zoom routes – for more information visit flyzoom.com.
Report by Mark Caswell
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