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Published on 28th August 2008 by wallace shackleton, 1214 views
Zoom heads towards administration
Transatlantic budget carrier Zoom Airlines has admitted it is applying to go into administration.
The announcement came after one of its planes was detained at Glasgow Airport on Thursday for non-payment of air traffic control charges.
UK-Canadian Zoom blamed its problems on the "horrendous" price of aviation fuel and the wider economic slowdown.
People due to travel on Zoom have been told to check their flight's status.
'Support and advice'
Zoom's admission of financial difficulties came after BAA, the owner of Gatwick Airport, said it had been instructed by the UK's Civil Aviation Authority to detain a Zoom plane that was due to fly to the Canadian cities of Halifax and Ottawa.
BAA said another Zoom flight from Glasgow to Vancouver had also been delayed.
"BAA is working with Zoom Airlines to provide support and advice for passengers," said the airport company.
Meanwhile, a Zoom plane was grounded overnight in Calgary, Canada, a move also said to be in connection to overdue charges.
"Zoom Airlines Ltd based at Gatwick and Zoom Airlines Inc based in Ottawa, Canada, have sought creditor protection by filing legal notices of intention to appoint an administrator in both the UK and Canada," said Zoom executive chairman Hugh Boyle.
He added that while Zoom sincerely apologised for those passengers affected by the grounded aircraft, its "flights will continue to operate".
Zoom operates services from Glasgow, Gatwick, Manchester, Cardiff and Belfast International airports a well as from European airports to a number of North American destinations.
Story from BBC NEWS:
1 Danijel Jovanovic
(28. 8. 2008, 23:47 CET)