News

Zoom goes bust

29 Aug 2008 by Mark Caswell

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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