Canadian discount transatlantic carrier, Zoom Airlines cancelled all it’s flights and began bankruptcy proceeding on Thursday. The airline has been grounded by rising fuel costs, and several passengers were left stranded at various airports.
Zoom Airlines said it had tried until mid-day Thursday to secure a financial lifeline that would keep it afloat after rising jet fuel costs added $50 million in annual costs.
However creditors refused to give Zoom any more time, forcing it to file for creditor protection in Canada and Britain.
“We deeply regret the fact that we have been forced to cease all Zoom operations,” Hugh and John Boyle, co-founders of the privately held company said in a statement.
In the statement they also said they are desperately sorry for the incovinience that this will cause passengers and those who have booked flights. It is a tragic day for passengers and staff at Zoom.
Surging fuel prices have led several airlines to seek legal shelter from creditors as their costs have soared. Some established airlines have been forced to cut staff levels, reduce capacity and some have imposed new fees to deal with the burden.
These are tough times indeed and probably more trouble ahead in the airline industry.
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Fri, Aug 29, 2008
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