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SPECIAL EDITION |
| August 28th, 2008 |
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ZOOM ZOOMS INTO BANKRUPTCY Zoom airlines grounds fleet and suspends all operations |
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| Hugh Boyle | | Zoom Airlines, the Canadian-based economy-fare airline has officially suspended operations effective Thursday, August 28, 2008 at 7 p.m.
Both Zoom Airlines Inc. and Zoom Airlines Ltd., the Canadian and UK airlines, have started administration on bankruptcy proceedings in their home countries.
All Zoom flights have been cancelled and all aircrafts are grounded.
Please note that all Zoom customers who have future travel plans involving a Zoom flight for which reservations and payment have been made, should refer to their credit or debit card company to apply for a refund.
Personal apology
Hugh and John Boyle, the founders of Zoom made an official 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.
"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 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.
"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.
"We would like to thank the many thousands of passengers who chose to travel with Zoom during the last seven years and efforts of the airline's staff. We are extremely sorry for today's unavoidable actions."
Transat shares jump
According to the Canadian Press, Transat, one of Zoom's main competitors has noticed a share increase of more than nine per cent yesterday afternoon to $20.21 on the Toronto Stock Exchange. Air Canada however, has reported little change in the stock market with shares at $4.74, up 0.2 per cent.
British and Virgin to offer special fares
Both British Airways and Virgin Atlantic have indicated that they will be offering special fares to customers whose travel plans have been affected by the airlines suspension of flights. Please visit ba.com or virgin-atlantic.com for full details.
Zoom announces details of similar routes
Zoom’s website has set out details of other airlines who operate the same or similar routes to those flown with Zoom.
Services offered by other airlines that may be of assistance to Zoom customers include:
London Gatwick to Toronto: Canadian Affair, Air Canada, Fly Globespan, British Airways
London Gatwick to Vancouver: Canadian Affair, Air Canada, Fly Globespan, British Airways
London Gatwick to Calgary: Canadian Affair, Air Canada, Fly Globespan, British Airways
London Gatwick to Montreal: Canadian Affair, Air Canada, British Airways
London Gatwick to Ottawa: Canadian Affair, Air Canada
London Gatwick to Halifax: Canadian Affair, Air Canada
London Gatwick to Winnipeg: No direct flights (See Air Canada for options to change planes at airports in Canada to fly on this route)
London Gatwick to Bermuda: British Airways
London Gatwick to Fort Lauderdale: No direct flights (See British Airways, Virgin Atlantic and American Airlines for flights to Miami; or other US airlines for flights via hubs in America)
London Gatwick to San Diego: No direct flights (See British Airways, Virgin Atlantic, American Airlines, Air New Zealand and United Airlines for flights to Los Angeles or other US airlines for flights via hubs in America)
Glasgow to Ottawa: No direct flights
Glasgow to Halifax: No direct flights
Glasgow to Calgary: Canadian Affair, Fly Globespan
Glasgow to Vancouver: Canadian Affair, Fly Globespan
Glasgow to Toronto: Canadian Affair, Fly Globespan
Manchester to Vancouver: Canadian Affair, Fly Globespan
Manchester to Toronto: Canadian Affair, Fly Globespan
Belfast to Toronto: Canadian Affair, Fly Globespan
Belfast to Vancouver: No direct flights.
Cardiff to Toronto: No direct flights
Cardiff to Vancouver: No direct flights
Montreal to Paris: Air Canada, Air France, Air Transat
Toronto to Paris: Air Canada, Air France, Air Transat
Calgary to Paris: Air Transat
Vancouver to Paris: Air Transat
Montreal to Rome: Air Transat, Alitalia
Toronto to Rome: Alitalia
For a complete listing of airline information, please see below.
Airline website addresses:
Air Canada: aircanada.com Air France: airfrance.com Air New Zealand: airnewzealand.com Air Transat: airtransat.com Alitalia: alitalia.com British Airways: ba.com Canadian Affair: canadianaffair.ca Fly Globespan: flyglobespan.com United Airways: united.com Virgin Atlantic: virgin-atlantic.com
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