Zoom seeks administration
Long haul low cost carrier Zoom Airlines has applied for administration.
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 operates transatlantic services from Gatwick and four other UK airports to seven destinations in Canada in addition to Fort Lauderdale, Bermuda, New York and San Diego. Flights also run from Paris and Rome.
It was founded six years ago as a low fare transatlantic carrier based in Ottawa.
Zoom announced today that it had sought creditor protection in view of ‘acutely difficult’ trading conditions within the aviation industry.
Zoom is continuing to operate services across its network of routes between the UK, Canada and the US.
The airline said the unprecedented rise in the price of aviation fuel and the current economic climate had created ‘acutely difficult’ trading conditions.
Executive chairman Hugh Boyle said: “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.â€
He added: “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.â€
Zoom admitted to operational difficulties with a flight to Vancouver on Wednesday which stopped off at Calgary yesterday as a result of an issue regarding the leasing of the aircraft.
The 69 passengers who were travelling on Vancouver from Calgary were found an alternative flight from Calgary to Vancouver and suffered a short delay.
An airline spokesman said: “This had a knock-on effect on services and we are still incurring some delays to services today. However, we are striving to get everything back on track as soon as possible.â€
by Phil Davies
Phil Davies
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