Zoom suspends operations, strands passengers

A Zoom plane sits on the tarmac at the Calgary International Airport.(Louise Moquin/CBC)

Zoom Airlines Inc. sought court protection from creditors in Canada and the United States and suspended all operations 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 "have sought creditor protection by filing legal notices of intention to appoint an administrator in both the U.K. and Canada."

The company also said Thursday afternoon on its website that all flights scheduled to depart have been cancelled and its aircraft have been grounded.

Outside Zoom's Ottawa headquarters on Hunt Club Road Thursday afternoon, the doors were locked and people were seen leaving the building with boxes and plants, loading them into cars and driving away.

The unexpected move jeopardized the flights of hundreds of passengers on Wednesday and Thursday at airports in Canada, the Caribbean and Europe.

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 Toronto, is supposed to be on a Zoom flight to Glasgow on Sept. 13 to return to school. Now he's wondering where he'll find the money for another ticket.

Zoom 'sorry for the inconvenience': founders

Zoom said customers who had future travel plans with the airline for which reservations and payment have been made should refer to their credit or debit card company for a refund. British Airways and Virgin Atlantic are offering special fares to assist stranded Zoom passengers, the company said, adding that a list of other airlines that could assist them was available on its website.

"We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights," Zoom founders John and Hugh Boyle said in a release. "Even as late as yesterday we had secured a new investment package but the actions of creditors meant we could not continue flying."

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 about 97 passengers who got off a flight when it landed in Calgary 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

In Ottawa, passengers were told Wednesday that their flight to London Gatwick was delayed, only to learn Thursday it was cancelled. Many scrambled to retrieve their baggage from the carousel and buy seats on an Air Canada flight, but at least one man decided to go home and cancel his vacation.

Ottawa airport spokesperson Krista Kealey said the airport was aware of the situation at other airports, but Zoom didn't owe any money to the Ottawa airport and had always been "a good customer."

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 employed 450 people in Canada and 260 in the U.K.

With files from the Canadian Press

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