Airline collapse: Zoom passengers forced to pay thousands to get home

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http://www.guardian.co.uk/business/2008/aug/30/theairlineindustry.cheapflig=
hts

Airline collapse: Zoom passengers forced to pay thousands to get home

James Sturcke
The Guardian,
Saturday August 30 2008

Passengers left stranded by the collapse of the long-haul budget airline Zo=
om have described how they were forced to pay thousands of pounds for alter=
native flights.

Thousands of passengers were stranded in Britain and Canada by the collapse=
 of the airline, which grounded all flights on Thursday night. At least ano=
ther 40,000 customers with bookings were also affected. Not all of them wil=
l be able to claim compensation.

Zoom, which operated from five UK airports, blamed its financial difficulti=
es on the economic downturn and the rise in oil prices. Its UK managing dir=
ector, Jonathan Hinkles, said the firm's fuel bill had increased by =A315m,=
 a rise of about =A380-=A390 on the cost of a return ticket to Canada.

People were stranded at Cardiff, Glasgow and Belfast. Zoom also flew from G=
atwick and Manchester to eight destinations in Canada and a number of locat=
ions in the US.

Zoom's cash crisis became apparent on Wednesday after a flight from Paris w=
as grounded at Calgary airport in Canada. On Thursday, the Civil Aviation A=
uthority instructed Glasgow airport to detain a flight bound for Halifax, N=
ova Scotia, over the non-payment of charges.

Hinkles said the collapse was brought about by one of the leasing companies=
, which owned a Zoom aircraft, taking action to seize the plane. He told th=
e BBC this "set a chain of events in motion from which it was impossible fo=
r us to recover".

"We have been working on a financing deal for the company for two months an=
d we have been making very good progress with that," he said. "We fully exp=
ected we would be able to continue flying but the problems that we encounte=
red during the day [on Thursday], however, with a number of aircraft being =
seized by airports authorities, such as the one in Glasgow, made it very di=
fficult. Clearly you can't run an airline without aircraft."

Hinkles said 20,000 people in the UK had bookings with Zoom until the end o=
f 2009, and a similar number in Canada. The CAA said the figure was 60,000 =
and the number of British passengers stranded overseas by Zoom's collapse w=
as 4,500.

Passengers were told of the company's collapse as they waited into the even=
ing. Aaron Steele, 30, from Ottawa, was returning from his honeymoon in Sco=
tland. "We're travelling from Edinburgh to Ottawa via New York. It was arou=
nd =A31,000 for the flights plus we had to pay for a night in a hotel," he =
said. "We tried to get a flight until 11pm last night [Thursday] then reali=
sed we'd have to come back this morning [Friday]."

Xander Forsyth, from Edinburgh, was stuck at Halifax airport, Canada, with =
more than 200 Zoom passengers. Their flight to London had been delayed over=
night. They boarded on Thursday, waiting several more hours before being to=
ld to get off.

Police were waiting as they filed into the lounge. No one was allowed to le=
ave and tempers began to flare, with children crying and the heavy security=
 presence causing growing unease.

Forsyth, a graphic designer, said he Googled the word Zoom on his iPhone an=
d found out about the airline's crisis. "With a slight fear of being tackle=
d by police, I hopped on the highest counter I could see and shouted out th=
e news," he said.

Steve Ward, who had been visiting his mother in Halifax, booked business-cl=
ass tickets back to London on Iceland Air. They initially wanted to charge =
extra for each of his three young children, he said, but ultimately let the=
 group travel for C$7,000 (=A33,650), half the usual one-way rate.

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