Zoom Airlines Financial Woes

News today about Zoom Airlines which operates flights between Canada and the United Kingdom (UK) has run into financial problems. An aircraft was taken back from Zoom by the owner who leased the aircraft to them. This was after the Calgary Airport refused to refuel them as the bill owed to the airport authority was in excess of $400,000.

A little while later the airport authority in Glasgow, Scotland refused to allow a Zoom aircraft to leave because the Civil Aviation Authority in UK had outstanding bills from the European Air Traffic Control agency (Eurocontrol) that had to be paid.

Zoom Airlines has now filed for creditor protection in the UK and Canada as they have a financial plan in place to sort their cash flow out which 95% completed. If the protection is granted by the courts the airline will continue to operate and the passengers will not be left holding worthless ticket.

Many of the airlines in the world have been in Protection from the courts in the last few years and have managed to survive. This is now part of the business plan of airlines in the world of rising fuel prices and competition for passengers. We can only hope the airline survives and all the jobs with it are not lost.

Update

Zoom Airlines has now stopped operations. The airline management say that the actions of the creditors prevented them from continuing to fly and therefore the decision has been made to stop all further operations. The company apologises to all the passengers and more than 600 employees who are now out of work.