Passengers stranded as Zoom ceases operations

Budget transatlantic carrier Zoom Airlines left hundreds of passengers stranded when it ceased operations last night.

Having failed to attract new investors, the airline’s owners announced that it had suspended operations with immediate effect.

All flights were cancelled and passengers are being advised to seek bookings with alternative airlines.

Passengers whose travel arrangements have been made as part of a holiday package originating in the UK and booked through a holiday company, may be able to make a claim under the CAA’s Air Travel Organiser’s Licence scheme and are being advised to consult the CAA ATOL website at www.atol.org.uk, a statement said.

Those who have future travel plans involving a Zoom flight for which reservations and payment have been made, are being advised to their credit or debit card company to apply for a refund.

Zoom has also publicised details of other airlines which operate the same or similar routes “in the hope that this may assist passengers in making alternative travel plans”.

Zoom blamed an “unprecedented rise in the price of aviation fuel” which resulted in a $50 million increase in operating costs during the last year and the general economic downturn for its downfall.

This combination had made it “impossible for operations to continue”.

The airline, founded by Scottish travel industry veterans Hugh and John Boyle, is the latest carrier to suffer from soaring fuel costs and a weakening economy.

Zoom Airlines comprises Zoom Airlines Inc, based in Canada, and Zoom Airlines Ltd, based at Gatwick. Both companies began administration proceedings yesterday (see previous TravelMole story).

The airline employs 450 staff in Canada and 260 in the UK and operated flights from six UK airports, Gatwick, Glasgow, Manchester, Cardiff, Belfast, Cardiff as well as Paris and Rome. It flew to eight destinations in Canada, New York, San Diego, Fort Lauderdale and Bermuda.

Hugh and John Boyle said: “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.”

They said that even as late yesterday they believed they 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,” they said.

“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 collapse of Zoom follows the failure of Asian low fares long haul airline Oasis Hong Kong and transatlantic business class carriers Silverjet, MAXjet and Eos.

*See TravelMole guest Comment.

by Phil Davies