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Zoom Airlines Suspends Operations

August 29, 2008 By: George Dooley

Transatlantic operator Zoom Airlines has suspended operations and canceled flights effective. Both Zoom Airlines Inc. and Zoom Airlines Ltd, the Canadian and UK airlines respectively, have started administration (bankruptcy) proceedings in their home countries. The airline advises customers with future travel plans involving a Zoom flight for which reservations and payment have been made to refer to their credit or debit card company to apply for a refund.

Hugh and John Boyle, the founders of Zoom, said in a statement: "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.

"The suspension of operations is a result of the exceptionally difficult trading conditions which have affected all airlines over the last 12 months," the statement continues. "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.”

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.

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