Canadian Airline Folds Up Over High Operating Cost

Ottawa, Ontario (AHN) - Planes of Zoom Airlines failed to take off Wednesday and Thursday after the Ottawa-based air carrier shut down operations over financial problems.

Zoom is the latest casualty of soaring fuel and operating costs that had caused the global aviation industry to downsize by laying off workers, reducing capacity or shuttering down.

The air carrier's founders, Hugh and John Boyle, said in a statement, "We deeply regret the fact that we have been forced to cease all Zoom operations. It is a tragic day for our passengers and more than 600 staff... We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights."

Aside from stopping operations, Zoom also closed it website Thursday afternoon, which prevented clients from booking online. Zoom's air routes include domestic trips to Canada and flights to Britain, parts of Europe and the United States.

The Boyle brothers explained that they tried to keep the airline afloat and even attempted to secure a refinancing package, but its credits sought protection by filing legal notices of intention to appoint an administrator in the U.K. and Canada.

On Wednesday, 69 Zoom passengers in Calgary had to buy tickets from other airlines, while the embattled Zoom failed to offer future flights, compensation or alternative arrangements.

On Thursday, 67 travelers enroute toVancouver from the Cardiff International Airport in Wales already aboard their plane were informed of the flight's cancellation. On the same day, 350 passengers were stranded at the Glasgow International Airport in Scotland after their trip was canceled.

To bring back the six-year old airline back in business, Zoom Airlines needs $46.3 million. The air carrier had 450 employees in Canada and 260 in the U.K.