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Airline collapse hits thousands Airline collapse hits thousands
(about 2 hours later)
Hundreds of people have been left stranded and up to 45,000 have lost bookings after the collapse of the low-cost transatlantic airline Zoom.Hundreds of people have been left stranded and up to 45,000 have lost bookings after the collapse of the low-cost transatlantic airline Zoom.
The carrier suspended all its flights, blaming the economic downturn and steep rises in fuel bills.The carrier suspended all its flights, blaming the economic downturn and steep rises in fuel bills.
Zoom, founded in 2001, flew mainly to Canada from Glasgow, Gatwick, Belfast, Cardiff and Manchester airports.Zoom, founded in 2001, flew mainly to Canada from Glasgow, Gatwick, Belfast, Cardiff and Manchester airports.
Zoom said BA and Virgin Atlantic were offering "special" fares for passengers whose flights had been cancelled.Zoom said BA and Virgin Atlantic were offering "special" fares for passengers whose flights had been cancelled.
Thousands of people due to fly with Zoom in the coming weeks have been told to rebook with other carriers.Thousands of people due to fly with Zoom in the coming weeks have been told to rebook with other carriers.
The airline said it expected the vast majority of affected passengers would be able to secure alternative flights and would be entitled to refunds.The airline said it expected the vast majority of affected passengers would be able to secure alternative flights and would be entitled to refunds.
It said that 80% of its passenger bookings were made using credit cards or through travel operators and both methods carried a high degree of protection.It said that 80% of its passenger bookings were made using credit cards or through travel operators and both methods carried a high degree of protection.
We believe the majority of passengers who booked with us should be able to secure an alternative flight Hugh BoyleZoom chairman Q&A: What can passengers do now?Passengers count the costChoir caught up in collapse Zoom said an estimated 40,000 passengers had made bookings over the next year, the majority of which were for 2009 departures.We believe the majority of passengers who booked with us should be able to secure an alternative flight Hugh BoyleZoom chairman Q&A: What can passengers do now?Passengers count the costChoir caught up in collapse Zoom said an estimated 40,000 passengers had made bookings over the next year, the majority of which were for 2009 departures.
It is understood that 4,500 UK-based customers had made reservations to travel with Zoom within the next week.It is understood that 4,500 UK-based customers had made reservations to travel with Zoom within the next week.
An estimated 650 of these passengers were due to travel from a variety of Canadian and USA destinations within the next 36 hours.An estimated 650 of these passengers were due to travel from a variety of Canadian and USA destinations within the next 36 hours.
About 10,400 UK-based people have made return bookings with Zoom over the next 12 months.About 10,400 UK-based people have made return bookings with Zoom over the next 12 months.
The airline said it had taken about 20,000 non-UK bookings over the next 12 months and allocated an additional 10,000 seats to travel operators.The airline said it had taken about 20,000 non-UK bookings over the next 12 months and allocated an additional 10,000 seats to travel operators.
Zoom chairman Hugh Boyle said: "We are trying to make as many passengers as possible aware of their options in terms of alternative flights and the possibility of securing refunds for the flights they booked with Zoom.Zoom chairman Hugh Boyle said: "We are trying to make as many passengers as possible aware of their options in terms of alternative flights and the possibility of securing refunds for the flights they booked with Zoom.
"As things stand, there is good availability of alternative flights as we have passed the main holiday period. We believe the majority of passengers who booked with us should be able to secure an alternative flight."As things stand, there is good availability of alternative flights as we have passed the main holiday period. We believe the majority of passengers who booked with us should be able to secure an alternative flight.
"We have been in contact with other airlines, including BA, Virgin and FlyGlobespan in particular, and they have made clear the availability of alternative flights."We have been in contact with other airlines, including BA, Virgin and FlyGlobespan in particular, and they have made clear the availability of alternative flights.
"We have also listed on the www.flyzoom.com website a list of other airlines which offer alternative services on routes where Zoom operated.""We have also listed on the www.flyzoom.com website a list of other airlines which offer alternative services on routes where Zoom operated."
Mr Boyle said every possible effort had been made to save the airline and safeguard flights and that it was only very late on Thursday when the actions of suppliers and creditors made it impossible to continue.Mr Boyle said every possible effort had been made to save the airline and safeguard flights and that it was only very late on Thursday when the actions of suppliers and creditors made it impossible to continue.
Jonathan Hinkles, UK managing director of Zoom, put the airline's troubles down to the "significant" increase in the price of fuel and a slowdown in the economy.Jonathan Hinkles, UK managing director of Zoom, put the airline's troubles down to the "significant" increase in the price of fuel and a slowdown in the economy.
He said the airline's fuel bill had increased by about £15m over the past year, representing a rise of about £80-£90 on the cost of a return ticket price on a trip to Canada.He said the airline's fuel bill had increased by about £15m over the past year, representing a rise of about £80-£90 on the cost of a return ticket price on a trip to Canada.
'Impossible events''Impossible events'
Mr Hinkles said the collapse was brought about by one of the leasing companies which owned one of Zoom's aircraft taking action to seize the plane.Mr Hinkles said the collapse was brought about by one of the leasing companies which owned one of Zoom's aircraft taking action to seize the plane.
He said that "set a chain of events in motion from which it was impossible for us to recover".He said that "set a chain of events in motion from which it was impossible for us to recover".
He added: "We have been working on a financing deal for the company for two months and we have been making very good progress with that.He added: "We have been working on a financing deal for the company for two months and we have been making very good progress with that.
"We fully expected we would be able to continue flying but the problems that we encountered during the day yesterday, however, with a number of aircraft being seized by airports authorities, such as the one in Glasgow, made it very difficult. Clearly you can't run an airline without aircraft.""We fully expected we would be able to continue flying but the problems that we encountered during the day yesterday, however, with a number of aircraft being seized by airports authorities, such as the one in Glasgow, made it very difficult. Clearly you can't run an airline without aircraft."
WHAT SHOULD ZOOM AIRLINES' PASSENGERS DO? Any Zoom flight you have booked will not be departing. If you still wish to travel, Zoom recommends contacting other carriers and lists several on its website If your flight is part of a package holiday originating from the UK, you may be able to make a claim under the CAA's Air Travel Organiser's Licence (Atol) scheme. If you have paid for a Zoom flight, contact your credit card or debit card issuer to see if they can refund your money Source: Zoom Airlines Creditors blamed for collapseAnalysis: More turbulence ahead?Airline troubles fuel Mod anxietyWHAT SHOULD ZOOM AIRLINES' PASSENGERS DO? Any Zoom flight you have booked will not be departing. If you still wish to travel, Zoom recommends contacting other carriers and lists several on its website If your flight is part of a package holiday originating from the UK, you may be able to make a claim under the CAA's Air Travel Organiser's Licence (Atol) scheme. If you have paid for a Zoom flight, contact your credit card or debit card issuer to see if they can refund your money Source: Zoom Airlines Creditors blamed for collapseAnalysis: More turbulence ahead?Airline troubles fuel Mod anxiety
The Civil Aviation Authority (CAA) said its Air Travel Organisers' Licensing (Atol) protection scheme did not cover customers who booked flights directly with airlines such as Zoom.The Civil Aviation Authority (CAA) said its Air Travel Organisers' Licensing (Atol) protection scheme did not cover customers who booked flights directly with airlines such as Zoom.
It said people should approach their credit or debit card companies for advice about refunds, while those with travel insurance should check whether they have airline insolvency cover.It said people should approach their credit or debit card companies for advice about refunds, while those with travel insurance should check whether they have airline insolvency cover.
The CAA said UK customers who purchased air holiday packages which included Zoom Airlines flights or charter flights from a tour operator should contact the operator or travel agent about alternative travel arrangements.The CAA said UK customers who purchased air holiday packages which included Zoom Airlines flights or charter flights from a tour operator should contact the operator or travel agent about alternative travel arrangements.
Many passengers have contacted BBC News to tell how their travel plans have been affected.Many passengers have contacted BBC News to tell how their travel plans have been affected.
Gabrielle Wilson, a Canadian student, said that she spent the whole of Thursday at Glasgow airport waiting for her flight home.Gabrielle Wilson, a Canadian student, said that she spent the whole of Thursday at Glasgow airport waiting for her flight home.
Holiday ruinedHoliday ruined
"We showed up at the airport at 9am. We were supposed to be on an 11am flight and were there until 6pm hearing almost every hour, 'More information to come, more information to come'."We showed up at the airport at 9am. We were supposed to be on an 11am flight and were there until 6pm hearing almost every hour, 'More information to come, more information to come'.
"The information that did come at 6pm was that the airline had gone bankrupt and that there would be no more flights.""The information that did come at 6pm was that the airline had gone bankrupt and that there would be no more flights."
William Mooney, who had hoped to fly to Canada with his wife for a holiday, spent Thursday at Glasgow airport.William Mooney, who had hoped to fly to Canada with his wife for a holiday, spent Thursday at Glasgow airport.
He said: "BAA started to issue leaflets telling us that Zoom airlines had gone into administration and basically we should go home.He said: "BAA started to issue leaflets telling us that Zoom airlines had gone into administration and basically we should go home.
"This was supposed to be the holiday of a lifetime for my wife and I. I have just retired from the fire service after 30 years, my wife is 50 this year and we were going to have a celebration holiday.""This was supposed to be the holiday of a lifetime for my wife and I. I have just retired from the fire service after 30 years, my wife is 50 this year and we were going to have a celebration holiday."
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 firms Eos, Maxjet and Silverjet. Several other budget long-haul carriers have gone into administration in recent months, including Hong Kong-to-London carrier Oasis and business class transatlantic firms Eos, Maxjet and Silverjet.
Aviation analyst Laurie Price said any airline that had not hedged the price at which it buys fuel - thereby limiting its exposure to soaring prices - was now struggling to make a profit.
Are you due to travel on Zoom? Do you work for the company? Send us your comments and experiences using the form below.Are you due to travel on Zoom? Do you work for the company? Send us your comments and experiences using the form below.
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