Zoom Airlines shuts down flights, starts U.K., Canada administration proceedings

By Caroline Salls

Pittsburgh, Aug. 29 - Zoom Airlines suspended operations on Thursday, and Canadian and U.K. airlines Zoom Airlines Inc. and Zoom Airlines Ltd. have started administration proceedings in their home countries, according to a company news release.

According to the release, all Zoom flights have been cancelled and Zoom's aircraft have been grounded.

"We deeply regret the fact that we have been forced to suspend all Zoom operations," Zoom founders Hugh and John Boyle said in the release.

"It is a tragic day for our passengers and more than 600 staff.

"We have done everything we can to support the airline and left no stone unturned to secure a refinancing package that would have kept our aircraft filing."

The Boyles said they thought they had secured an investment package late Thursday that would have allowed the company to continue to operate, but creditor actions forced Zoom out of operation.

"Having been unable to complete the investment package, the directors of Zoom had no option but to instigate administration proceedings," the Boyles said in the release.

"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."

Zoom said both British Airways and Virgin Atlantic are planning to offer special fares to customers whose travel plans were affected by Zoom's flight suspension.

Zoom is an Ottawa-based airline.

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