09 September 2008

Chances of Zoom come back Ã¢â¬Ëœvery slimÃ¢â¬â¢

An administrator appointed for failed transatlantic carrier Zoom Airlines says chances of reviving the business are Ã¢â¬Åâœvery slimÃ¢â¬~.

Administrators have begun the process of assessing the companyÃ¢â¬â¢s debts and assets.

Accountants and business advisers PKF are acting as administrators in the UK following the grounding of Zoom flights on August 28 leaving, thousands of passengers stranded and many more with advance bookings.

PKF senior partner Anne Buchanan, who is leading the administration team, said: Ã¢â¬ÅâœIt is clear even at this stage that at the heart of the airlineÃ¢â¬â¢s difficulties was the very substantial increases it faced in the price of aviation fuel coupled with the deteriorating economic situation.

Ã¢â¬ÅâœAlthough a re-financing package appeared imminent last week it could not be completed before the airline was overwhelmed by the demands of suppliers and creditors.

Ã¢â¬ÅâœAs administrators we will examine every possible avenue to resurrect the business and we believe some discussions have taken place.

Ã¢â¬ÅâœHowever, the chances of succeeding are very slim and we must remain realistic about the outcome.

Ã¢â¬ÅâœAlthough we are at a very early stage of our financial investigation, we cannot be optimistic that there will be sufficient funds available to pay a dividend to the unsecured creditors.Ã¢â¬Åâœ

Zoom Airlines comprised two companies, Zoom Airlines Inc. in Canada and Zoom Airlines Ltd basedÃ~at Gatwick.

Zoom Airlines Ltd operated scheduled flights from Gatwick to New York, Bermuda, San Diego and Fort Lauderdale.Ã~Ã~Ã~

Separate insolvency practitioners, Doyle Salewski Inc. in Ottawa, have been appointed in Canada to handle the affairs of Zoom Airlines Inc. which operated routes between Canada, the UK and Europe.

by Phil Davies