Zoom Airlines has announced it has sought creditor protection in view of “‘acutely difficult’ trading conditions within the aviation industry”.
The Canadian airline says it is continuing to operate services across its network, following “operational difficulties” last night when one of its aircraft was grounded in Calgary. Local media have reported that the aircraft's lease had been terminated by its owners due to unpaid bills.
Hugh Boyle, executive chairman of Zoom, said today: “Zoom Airlines Limited, based at London Gatwick and Zoom Airlines Inc, based in Ottawa Canada, have sought creditor protection by filing legal notices of intention to appoint an administrator in both the UK and Canada.
“The airline’s flights will continue to operate and the decision to instigate creditor protection proceedings means that the demands of existing creditors are frozen while we continue negotiations on an investment package which already are at an advanced stage.
“This situation has resulted in delays for passengers last night and today and we are working extremely hard to get our flights back on schedule. We sincerely apologise for the inconvenience this has caused passengers.
“Our trading position is a direct consequence of the horrendous increase in the price of aviation fuel and the economic climate. The rise in the price of fuel resulted in a $50 million increase in our operating costs during the last year alone and that coupled with the general economic downturn has led to difficulties which are being felt throughout the industry.”
Low-cost carrier Zoom serves routes from the UK to both Canada and the US, although it recently announced it would be dropping its London Gatwick to New York flights from October 31 (see online news July 31).
The news follows the demise of fellow low-cost long-haul carrier Oasis Hong Kong Airlines in April (see online news April 9), and of three all-business class airlines (Maxjet, Eos and Silverjet) over the last nine months.
For more information visit flyzoom.com.
Report by Mark Caswell
