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Zoom seeks creditor protection

Zoom Airlines has sought creditor protection, blaming “acutely difficult” trading conditions within the aviation industry.


Zoom is continuing to operate services across its network of routes between the UK, Canada and the USA.


The airline said the rise in the price of  fuel and the current economic climate had created the tough trading conditions.


The airline has experienced a $50 million increase in operating costs during the last year.


Zoom executive chairman Hugh Boyle said: “Zoom Airlines Limited, based at London 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.


“The airline’s flights will continue to operate and the decision to instigate creditor protection proceedings means that the demands of existing creditors are frozen while we continue negotiations on an investment package which already are at an advanced stage.”


Zoom said it had experienced operational difficulties with a flight to Vancouver on Wednesday which stopped off at Calgary yesterday because of a problem with the leasing of the aircraft. The 69 passengers who were travelling on Vancouver from Calgary were found an alternative flight from Calgary to Vancouver.


An airline spokesman said: “This had a knock-on effect on services we are still incurring some delays to services today. However, we are striving to get everything back on track as soon as possible.”


 

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