John and Hugh Boyle pulled the pin on the company’s operations last night. Administration proceedings have begun in Canada and the UK to wrap up Zoom Airlines Inc and Zoom Airlines Ltd, respectively. Zoom had employed more than 600 staff.
In a statement, the Boyles said they did everything to secure a refinancing package that would have saved the airline: “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 Boyles argued that “exceptionally difficult trading conditions” had thwarted their efforts to continue Zoom as a going concern. “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.”
Zoom’s demise follows that of other airlines which also struggled to adjust to tougher trading circumstances.
Silverjet, the business class airline founded by Lawrence Hunt, suspended operations in May 2008 while Eos, Maxjet and Oasis have also gone under.
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