Zoom Airlines suspends operations
3 September 2009
Zoom Airlines has suspended operations with effect from 19:00 hrs on Thursday 28 August 2008. Both Zoom Airlines Inc and Zoom Airlines Ltd, the Canadian and UK airlines, have started administration proceedings in their home countries. All Zoom flights have been cancelled and aircraft grounded.
Hugh and John Boyle, the founders of Zoom, 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. 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."
Both British Airways and Virgin Atlantic have indicated that they will be offering special fares to customers whose travel plans have been affected by Zoom's suspension of flights. Customers are advised to see ba.com or virginatlantic.com for full details.