Zoom grounds operations for good
Friday, 29 Aug 2008 00:27
Low-cost airline Zoom cancels scheduled flights and reveals it is filing for bankruptcy
Low-cost carrier Zoom has cancelled all its scheduled flights after revealing it is to file for bankruptcy.
The Canadian-UK airline said it had no choice but to ground aircraft after an "unprecedented increase" in aviation fuel.
Zoom founders Hugh and John Boyle, who announced their company's demise in a message on the airline's website, said fuel bills had risen by as much as $50 million (£27 million) in one year.
They said the collapse was a "tragic day" for passengers and the airline's 600 employees.
"We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights," a statement explained.
"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.
"Even as late as yesterday we had secured a new investment package but the actions of creditors meant we could not continue flying."
British Airways and Virgin Atlantic are offering special fares for Zoom passengers following Thursday's announcement.
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