Zoom Airlines Seek Protection From Creditors
Posted 28 August 2008 - 03:53 PM
THANK GOODNESS WE ARE WITH AIR CANADA VACATIONS!
Zoom seeks protection from creditors, strands passengers
Zoom Airlines Inc. sought court protection from creditors in Canada and the United States on Thursday, leaving hundreds of passengers stranded at airports.
Ottawa-based Zoom Airlines, which flies in Canada, the Caribbean and Europe, filed a notice of application Thursday, blaming its troubles on the sagging economy and the "horrendous" increases in fuel prices that resulted in a $50 million increase in operating costs in 2007 alone.
In a statement, Zoom executive chair Hugh Boyle said the company's British and Canadian operations â€œhave sought creditor protection by filing legal notices of intention to appoint an administrator in both the U.K. and Canada."
"The airline's flights will continue to operate, and the decision to instigate creditor protection proceedings means that the demands of existing creditors are frozen while we continue negotiations on an investment package which already are at an advanced stage."
The unexpected move jeopardized the flights of hundreds of passengers at several airports, including in Calgary, Halifax, Ottawa and Glasgow.
On Wednesday, dozens of passengers booked on a Zoom flight bound for Vancouver were stranded at Calgary International Airport.
The discount carrier owes money to fuel suppliers and airports, including $400,000 to the Calgary Airport Authority, said airport authority spokesman Bryce Paton.
"They certainly owe lots to the Calgary Airport Authority, and we understand [to] other airports across the country," Paton said.
Paton said passengers got off their flight when it landed in Calgary and about 97 of them were scheduled to continue to fly to Vancouver with Zoom Airlines.
WestJet came to their rescue, booking them on several flights out of Calgary, he said.
Another 69 passengers, who were scheduled to fly to the U.K., learned Wednesday evening that Zoom had cancelled their flight.
Stranded passengers left to fend for themselves
Erin Cott, who learned her flight to Calgary from Glasgow was cancelled Thursday after being first told it would be delayed, ended up paying $1,000 for a ticket on another airline so she should could fly Friday for a Saturday wedding.
"This is the worst airline I've ever booked with," she told CBC News.
Imran Usmani said he felt "gutted" after learning of the airline's troubles. The university student, who is visiting his girlfriend in Toronto, is supposed to be on a Zoom flight to Glasgow on Sept. 13 to return to school. But now he's wondering where he'll find the money for another ticket.
In Ottawa, passengers in Ottawa learned that their flight to London Gatwick was first delayed and then cancelled Thursday.
In Halifax, 213 passengers had to get off an Ottawa-bound plane that was grounded Wednesday afternoon.
Peter Spurway, a spokesman at Halifax International Airport Authority, said the Zoom plane arrived in Halifax on Wednesday afternoon, but it was unable to continue to Ottawa because of a "maintenance issue."
Zoom Airlines employs 450 people in Canada and 260 in the U.K.
Posted 28 August 2008 - 03:57 PM
Posted 28 August 2008 - 03:58 PM
Posted 28 August 2008 - 04:03 PM
| Originally Posted by *Heather* |
I'm booked through Sunquest but they haven't told us the airline yet. Usually it's skyservice or westjet....since my wedding is so far away I should be fine right?
Posted 28 August 2008 - 05:19 PM
Posted 28 August 2008 - 06:07 PM
| Originally Posted by SunBride |
I know Go Travel Direct (which only operate out of Ottawa and Montreal) always use zoom.
But it makes you wonder which company will be next. ..
Posted 29 August 2008 - 01:33 PM
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