IDD Daily Updates and Restructuring Alert Weekly Updates, our email alerts
Zoom Airlines Starts Administration Proceedings In UK, Canada
Company believed it was close to financing last week, but it fell through.
August 30, 2008
Zoom Airlines said it has suspended operations and announced that its Zoom Airlines Inc. and Zoom Airlines Ltd, the Canadian and UK airlines, have started administration proceedings in their home countries.
All Zoom flights have been cancelled and aircraft grounded. The carrier has more than 600 employees.
In a prepared statement, the company said it has "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 (last Thursday) 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 carrier said it was felled by high fuel prices and a slowing economy. "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," the company said in its prepared statement.
For more information on related topics, visit the following:
