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Posted by on August 28, 2008


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Reading the BBC today I noticed the title “Airline admits financial problems” after reading further I noticed that it is another Canadian Airline. While I enjoy traveling I must admit that reading “Zoom Airlines has admitted being in financial difficulty after two planes used by the company were grounded over alleged non-payment of fees.” will definitely influence my purchasing decision. We were thinking about trying them in the fall but after reading this I will book with another airline.

While I have yet to FlyZoom yet, The thought had crossed my mind as I have traveled on numerous discount airlines in Europe. And actually are there really any full service airlines left? If you look at Air Canada they are even starting to resemble a discount airline. Everything costs something. Nowadays they can’t even put the cost of fuel in the price of the ticket. Not only do you buy a plane ticket you also pay the fuel bill separately. One would think the cost of fuel would be built into the overall price? Great scheme to increase profits.

After visiting the Zoom site I noticed that there is no mention of the current financial issues, searching Google for more news on Zooms financial difficulty and I turned up nothing. It looks like this will be one of those issues that the media won’t cover until thousands of passengers are stranded, as it stands Zoom has only stranded hundreds. Not worthy of Canadian Media attention, or Zoom PR is busy keeping this quiet.

Read the story on the BBC here.

UPDATE

For anyone looking for information on what do do if you affected by the collapse of Zoom, It has been recommended that “Passengers due to fly with Zoom were told to book with other carriers and to contact card issuers about refunds.”

Zoom has also said BA and Virgin Atlantic were offering “generous” fares for Zoom passengers.

More news on the Zoom collapse at http://news.bbc.co.uk/2/hi/business/7586654.stm

You can also monitor the Zoom website @ http://www.flyzoom.com/

Comments

  1. Alias Grace
    August 28, 2008

    CBC picked up the story this morning (http://www.cbc.ca/canada/calgary/story/2008/08/28/calgary-zoom.html?ref=rss). It’s getting ridiculous, this limited amount of choice we’ve got in Canada. It’s simply not worth the risk to travel with an airline that could go under at any moment. Most credit cards don’t cover that sort of thing anymore (not since the last time this happened in Canada).

  2. Robert
    August 28, 2008

    We need an open skies policy, and changes in the industry that will encourage competition.

    As it stands the governments policies protect the monopolies. 2 airlines that essentially service the entire country, not good for consumers.

    Update: Shortly after posting this blog entry the Zoom story appeared on the CBC and Globe and Mail.

  3. Hedge Fuel
    August 28, 2008

    I heard that they did not hedge fuel and have been caught out with huge increases in the costs of fuel. Most other airlines have hedged this so it doesn’t effect their cash flows or margins.

  4. Robert
    August 28, 2008

    Transatlantic budget carrier Zoom Airlines has suspended all of its flights after admitting it was applying to go into administration.

    http://news.bbc.co.uk/2/hi/uk_news/scotland/glasgow_and_west/7586654.stm

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