The morning after, confusion still abound and FlyZoom passengers still stranded in the UK, Canada and elsewhere. The demise of the discount airline has affected many hoping to get away on vacation, visit family and friends or travel for work. But looking back could the airline have avoided going out of business?
It is now time for the rumors to fly, news reports, assumptions and anger driven statements to make their way through the web and traditional media. When looking back and listening to some of the rumors on the web one would think that Zoom may have survived if it was being managed better.
One of the rumors are now circulating that Zoom was actually purchasing their fuel at current market rates. Essentially they were not hedging their fuel purchases, hence the $50 Million fuel increase. If Zoom had been hedging their fuel purchases would they be in a different position today? Possible ….
For those of you unaware what Fuel Hedging is… Fuel hedging is the practice, often employed by airline companies, of making advance purchases of fuel at a fixed price for future delivery to protect against the shock of anticipated rises in price. (Source: Wikipedia)
Is part of the downfall the fault and possible lack of experience by brothers Hugh and John Boyle? This was probably a contributing factor to the carriers demise. I wouldn’t image running an airline is an easy task in even the best of economic conditions and certainly wouldn’t be help by managements inexperience.
Is this the last airline we will see fail, more than likely no.