Hundreds of passengers stranded, Zoom Airlines shut downAugust 29th, 2008 - 1:51 pm ICT by Bupha Ravirot
The low-fare transatlantic airline Zoom canceled all flights and left hundreds of passengers stranded on Thursday night after it was forced into administration. The airline claimed to have financial trouble plus the increased fuel price.
Blaming on the weak economic climate an increase in the price of fuel which added around $50 million to its operating costs in 2007. Zoom will file for bankruptcy in Canada and the United Kingdom.
Zoom, the Canadian-British carrier, operated from five UK airports as well as Paris and Rome, given an apology for cancel all its flights to hundreds of passengers and advised them to contact their banks for refunds.
Scottish brothers John and Hugh Boyle airline founders said it had no choice but to suspend operations. The company contained of 710 staffs whom of 260 British and 450 Canadian, they are in danger of losing jobs.
“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 refinancing package that would have kept our aircraft flying.” said they.
“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.” added the Boyle brothers.
Chief executive Dermot Mannion blamed the rising oil price said that soaring cost of fuel and the harsh economic climate is the only big problem for the airline collapse. He said that a first half operating loss of €22.3 m (£17.9m), down from a profit of €2.6 m a year earlier.
Last night 205 passengers booked on the Halifax and Ottawa flight were still in the departure lounge at Glasgow airport, 156 passengers booked on the 12:40pm Glasgow to Vancouver flight were subject to a 12-hour delay, as their plane had not yet left Canada, said BAA spokesman.
Passengers at Glasgow who had been due to fly to Canada accused the airline of failing to provide enough information.
One of the passengers Carolyn Kristjansson, 45, said
“We arrived at 9am, more than three hours before our flight, and waited for 45 minutes then we were told that the flight had been delayed due to technical problems,” she said.
“We were told to check back and some people left the airport but we have been waiting here as we had nowhere to go and had limited currency. We’ve just found out what’s happened and my husband is trying to phone the credit card company now to see where we stand.”