Transatlantic budget carrier Zoom Airlines has admitted it is applying to go into administration.
Transatlantic budget carrier Zoom Airlines has suspended all its flights after admitting it is applying to go into administration.
All passengers due to fly with the airline have been advised to seek bookings with alternative airlines.
It comes after Zoom planes were held at Glasgow and Cardiff airports.
UK-Canadian Zoom blamed its problems on the "horrendous" price of aviation fuel - which had added $50m to annual fuel bills - and the economic slowdown.
Zoom employs 450 staff in Canada and 260 staff in the UK.
It operated flights from London Gatwick, Glasgow, Manchester, Cardiff, Belfast, Cardiff as well as Paris and Rome.
And it flew to eight destinations in Canada, New York, San Diego, Fort Lauderdale and Bermuda.
'Desperately sorry'
"We deeply regret the fact that we have been forced to suspend all Zoom operations. It is a tragic day for our passengers and staff," said Zoom founders Hugh and John Boyle.
"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."
They added that hopes of securing a new investment package to ensure future operations had failed, meaning administration procedures had to begin.
The announcement came after one of its planes was detained at Glasgow Airport on Thursday for non-payment of air traffic control charges.
The announcement came after one of its planes was detained at Glasgow Airport on Thursday for non-payment of air traffic control charges.
UK-Canadian Zoom blamed its problems on the "horrendous" price of aviation fuel and the wider economic slowdown.
Meanwhile passengers on a flight from Cardiff were told to get off their Zoom plane, which was then impounded.
People due to travel on Zoom have been told to check their flight's status.
A number of other budget long-haul carriers have gone into administration in recent months including Hong Kong-to-London carrier Oasis and business class transatlantic firm Silverjet.
'Support and advice'
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Zoom's admission of financial difficulties came after BAA, the owner of Gatwick Airport, said it had been instructed by the UK's Civil Aviation Authority to detain a Zoom plane that was due to fly to the Canadian cities of Halifax and Ottawa.
BAA said another Zoom flight from Glasgow to Vancouver had also been delayed.
"BAA is working with Zoom Airlines to provide support and advice for passengers," said the airport company.
Meanwhile, a Zoom plane was grounded overnight in Calgary, Canada, a move also said to be in connection to overdue charges.
"Zoom Airlines Ltd based at Gatwick and Zoom Airlines Inc based in Ottawa, Canada, have sought creditor protection by filing legal notices of intention to appoint an administrator in both the UK and Canada," said Zoom executive chairman Hugh Boyle.
He added that while Zoom sincerely apologised for those passengers affected by the grounded aircraft, its "flights will continue to operate".
Zoom operates services from Glasgow, Gatwick, Manchester, Cardiff and Belfast International airports a well as from European airports to a number of North American destinations.
Are you due to travel on Zoom? Have you been affected by any issues raised in this story?
Are you due to travel on Zoom? Have you been affected by any issues raised in this story?
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