Budget flight operator Zoom Airlines was forced to ground planes and halt operations at 7pm GMT today after running out of money.
In an email sent to its customers several hours later Zoom says:
"Zoom Airlines sincerely regrets to advise its customers that it has suspended operations with effect from 18:00 UTC on Thursday 28 August.
All flights... have been cancelled and Zoom's aircraft have been grounded.
Both Zoom Airlines Inc and Zoom Airlines Ltd, the Canadian and UK airlines, will be filing for insolvency proceedings in their home countries today."
Zoom's unpaid debts came to a head today when a flight from Glasgow airport to Halifax, Canada was grounded due to non-payment of UK and European air traffic control fees. Meanwhile, ground crews in Halifax refused to release a plane due to C$2million unpaid fees.
The Canadian-British airline operated transatlantic budget flights, booked through its web site, between Glasgow and Vancouver, Toronto and Calgary. It also operated flights to and from other UK and European cities.
Passengers due to travel with Zoom from Glasgow to Vancouver, Toronto and Calgary were given no warning of the company's crisis and have been left stranded.
Hugh and John Boyle, the founders of Zoom, blamed "the unprecedented increase
in the price of aviation fuel and the economic climate" for the company's collapse, even after it made a profit last year.
"The price of
oil resulted in our fuel bill jumping by nearly $50 million in one year
and we could not recover that from passengers who had already booked
their flights," the Boyles said in the email to customers.
"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 as late as yesterday we had secured a new
investment package but the actions of creditors meant we could not
continue flying."
They added: "It is a tragic day for our passengers and more than 600 staff."
"We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights.
Ticket Refunds
Zoom recommends that customers with reservations should now apply for a refund from debit and credit card companies.
For those whose flight was part of a holiday package originating in the UK and booked through a holiday company, Zoom suggests trying to make a claim under the CAA's Air Travel Organiser's Licence scheme. See the CAA ATOL website.
British Airways and Virgin Atlantic are also offering special fares to assist Zoom's displaced customers.