http://www.cbc.ca/consumer/story/2008/08/29/ot-airline-080829.html Zoom bankruptcy highlights risks to airline customers Porter, Westjet should be safe: expert The sudden bankruptcy of the discount airline Zoom that left passengers str= anded on both sides of the Atlantic highlights the insufficient protection = offered to airline customers, a consumer advocate says. People who bought tickets with Ottawa-based Zoom had no idea the company wa= s in financial trouble before it suddenly shut down and began bankruptcy pr= oceedings Thursday. Mel Fruitman, vice-president of the Consumers' Association of Canada, said = companies in such straits should be forced to disclose their situation and = set aside money to ensure customers get a refund if the company goes belly = up. Now that the company has gone bankrupt, he said, there is no guarantee cust= omers will be refunded for their useless tickets, since the nature of bankr= uptcy laws in Canada means corporate creditors get paid first when the asse= ts of an insolvent company are divided. "Consumers are way down at the bottom of the list, which is ridiculous as f= ar as I'm concerned," Fruitman said. Some customers can be reimbursed, including those who live in Ontario and b= ooked through a travel agent because they are covered by a travel industry = insurance fund, Fruitman said. Those who book directly with the airline either online or by phone don't ha= ve that kind of coverage, though it's possible they may be covered by their= credit card company, he said. "But that's voluntary on their part," Fruitman said, adding that credit car= d companies could change their policies at any time. Porter's strategy could succeed Despite the failure of Zoom and the similar failure of Jetsgo, another smal= l Canadian carrier, a few years ago, not all small airlines are as risky fo= r customers, said Ian Lee, director of Carleton University's Sprott School = of Business. He said it is possible for a small carrier to succeed if it focuses on a ni= che market, as Porter Airlines does. "Porter is going into the major urban centres =E2=80=94 Ottawa, Toronto, Mo= ntreal =E2=80=94 and they're selling largely to the business class," he sai= d, adding the airline's use of Toronto's downtown island airport instead of= Pearson International Airport outside the city is a major selling point. "= What Porter is selling is not low price like Zoom. Porter is selling conven= ience." Westjet, which once focused on discount flights, has grown to the point tha= t it can no longer be considered a small airline with the accompanying risk= s, he said. Lee said the current difficulties faced by small airlines likely mean consu= mers will face higher prices for plane tickets unless Canada deregulates th= e industry further and allows foreign airlines to compete on domestic route= s. =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".