http://www.signonsandiego.com/news/business/20080829-9999-1b29zoom.html S.D.-to-London flights canceled Economy airline Zoom to file for bankruptcy By Penni Crabtree UNION-TRIBUNE STAFF WRITER August 29, 2008 Soaring gas prices and harsh economic climate were blamed for Zoom's collap= se. Fuel costs rose almost $50 million in one year. Zoom Airlines, San Diego's only overseas airline service, has been zapped. The Canadian-based economy-fare airline suspended operations yesterday, gro= unding all aircraft and canceling its flights, and said it will file for ba= nkruptcy in Canada and the United Kingdom. The airline had been serving Lindbergh Field with twice-weekly nonstop flig= hts to London for only two months. Airport officials had wooed the airline = with about $300,000 in financial incentives, beating out San Francisco and = Seattle for the service. Hampton Brown, manager of air-services development for Lindbergh Field, sai= d the airport was not out any money on the incentives because its contract = with Zoom required the airline to provide service for at least a year to be= reimbursed for marketing and other expenses. =E2=80=9CThe issue for Zoom was fuel costs,=E2=80=9D Brown said. =E2=80=9CW= hen Zoom announced in 2007 that they would provide service to San Diego, th= e oil price was at $44; it's now over $100 and has been for a sustained amo= unt of time.=E2=80=9D Hugh and John Boyle, founders of Zoom, said in a prepared statement that ye= sterday was =E2=80=9Ca tragic day for our passengers and more than 600 staf= f.=E2=80=9D The Boyles blamed the soaring cost of fuel and the harsh economic climate f= or the airline's collapse. The company was profitable last year, but the su= surge in oil prices resulted in Zoom's fuel bill jumping by nearly $50 mill= ion in one year. =E2=80=9CWe could not recover that from passengers who had already booked t= heir flights,=E2=80=9D the Boyles said. Zoom had secured a new investment package to try to keep the airline aloft,= but creditors forced the closure, according to the statement. The airline's abrupt grounding left an unknown number of ticket-holding cus= tomers in the lurch, including up to 260 passengers who may have had ticket= s for today's San Diego-to-London flight. That's the number of seats availa= ble on Zoom's scheduled flight, Lindbergh Field officials said. Other Zoom ticket holders include Chargers fans who bought travel packages = to London for an Oct. 26 game against the New Orleans Saints at Wembley Sta= dium. Through San Diego's Aer Travel, the Chargers offered packages beginni= ng at $3,900 that included a nonstop flight to London, a six-night hotel st= ay and a ticket to the game. Chargers executive Jim Steeg said he did not know how many fans purchased t= he game package. He said it is =E2=80=9Ctoo early to say=E2=80=9D what alte= rnative arrangements might be made for fans, and he referred questions to A= er Travel. Aer Travel did not return a phone call seeking comment. Lindbergh Field officials said there will be staff on hand today to assist = Zoom passengers. The airline referred passengers to their credit or debit c= ard companies to apply for a refund. The company also said that British Airways and Virgin Atlantic agreed to of= fer special fares to assist Zoom customers who have been displaced by the s= uspension of flights. Since British Airways halted its nonstop flights to London in October 2003,= San Diego's airport had no airline that provided direct service outside No= rth America. Zoom flights departed at 4:25 p.m. Mondays and Fridays from San Diego and a= rrived at 11:10 a.m. the next day at Gatwick Airport in London. Flights dep= arted Mondays and Fridays from London and arrived the same dain San Diego. Local tourism officials had hoped the new international airline service wou= ld give San Diego better access to European travelers, who tend to stay lon= ger and spend more. Tourism is the San Diego region's third-largest industry, but international= tourism makes up less than 5 percent of that. =E2=80=9CZoom is disappointing news,=E2=80=9D said David Peckinpaugh, ConVi= s president and chief executive officer. =E2=80=9CThe United Kingdom is a p= rime driver of international tourism and to have that nonstop flight was go= ing to be a big assist for us.=E2=80=9D Zoom, which launched its San Diego service June 20, indicated that it was w= ell-received, and it had talked about adding a third nonstop flight next ye= ar, said Peckinpaugh. =E2=80=9CYou'd have to have your head in the sand not to be concerned about= the health of these airlines, particularly those with long-haul flights,= =E2=80=9D said Peckinpaugh. =E2=80=9CFuel prices have impacted those routes= more than others.=E2=80=9D Earlier this week, Southwest Airlines, considered one of the strongest U.S.= airline carriers, announced that it will eliminate nearly 200 flights earl= y next year, six of them departing from San Diego. Many other airlines have= also announced flight and route cuts in response to fuel costs and the wea= k economy. Zoom, founded in 2002, offered trans-Atlantic flights from New York; Fort L= auderdale, Fla.; Bermuda and several Canadian cities to London; Paris; Manc= hester, England; Glasgow, Scotland; Belfast, Northern Ireland; and Cardiff,= Wales. Penni Crabtree: (619) 293-1237; penni.crabtree@xxxxxxxxxxxxx =0A=0A=0A <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".