Posts / August 29, 2008

Zoom Airlines just announced they are calling it quits, effective August 28th, 2008.

Zoom Airlines sincerely regrets to advise its customers that it has suspended operations with effect from 19:00 hrs on Thursday 28 August 2008. Both 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.

For customers who have future travel plans involving a Zoom flight for which reservations and payment have been made, you should refer to your credit or debit card company to apply for a refund.

We have set out details of other airlines who operate the same or similar routes to those flown with Zoom in the hope that this may assist you in making alternative travel plans to replace the flights that you had booked with Zoom.

If your travel arrangements have been made as part of a holiday package originating in the UK and booked through a holiday company, you may be able to make a claim under the CAA’s Air Travel Organiser’s Licence scheme. For information on this, please consult the CAA ATOL website at www.atol.org.uk.

Hugh and John Boyle, the founders of Zoom, said tonight: “We deeply regret the fact that we have been forced to suspend all Zoom operations. It is a tragic day for our passengers and more than 600 staff.

“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. Even late today 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 suspension of operations is a result of the exceptionally difficult trading conditions which have affected all airlines over the last 12 months. 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.

“We would like to thank the many thousands of passengers who chose to travel with Zoom during the last seven years and efforts of the airline’s staff. We are extremely sorry for today’s unavoidable actions.”

Zoom blames the shutdown on the rising price of fuel. If you haven’t already watched the documentary A Crude Awakening / The Oil Crash, I highly recommend you do, a great movie about peak oil and the huge impact it will have on our oil-driven-society.

There was one comment made in Crude Awakening, that really struck a cord with me:

It is quite likely, that our grandchildren will never have the luxury of flight travel.

Wow, that’s quite shocking to grasp, especially since flying has become so common in our everyday lives. But as the demand for oil increases with China and India’s economies continuing to grow, and as we descend down the Hubbert Peak, closures of airlines like Zoom will become more and more common.