August 28, 2008
Low-cost Zoom airlines suspends all operations
 Zoom, a low-cost Canadian airline “regrets to advise its customers that it has suspended operations with effect from 18:00 UTC on Thursday 28 August,” according to the company’s website.
The upstart Zoom had been flying to New York since June 2007, when its $199 fares between JFK and London’s Gatwick garnered much ink.
Earlier today, the Calgary Herald reported flights were being canceled in part because a “fuel supplier also told the airline it wouldn’t refuel the aircraft because of outstanding debt.”
The letter from the airline’s founders, Hugh and John Boyle, starts this way:We deeply regret the fact that we have been forced to cease all Zoom operations. It is a tragic day for our passengers and more than 600 staff.
We are desperately sorry for the inconvenience 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 as late as yesterday we had secured a new investment package but the actions of creditors meant we could not continue flying.
The collapse of Zoom is a result of matter beyond our control. Only last year Zoom Airlines made profit, but that turned into a loss in the last year due to the unprecedented increase in the price of aviation fuel and the economic climate. The price of oil resulted in our fuel bill jumping by nearly $50 million in one year and we could not recover that from passengers who had already booked their flights. … Earlier: OpenSkies to buy L’Avion, will fly Orly to JFK, Newark
Business-class only airline SilverJet ceases all flights
Buh-bye: Eos Airline bankrupt, flies last flight today
Discount airline Skybus out of business as of today
Bankrupt ATA Airlines abruptly discontinues all service
August 28, 2008 3:45 PM in Arrivology
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