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Zoom Airlines Declares "Insolvency"

August 28, 2008 at 3:40 PM | by | Comments (0)

Zoom Airlines stopped flying at 2 pm this afternoon, declaring that the company's run out of money to pay off its debts. Though insolvency isn't exactly the same as bankruptcy, it's close enough: All future flights have been canceled and its planes have been parked.

A statement from the airline's founders wasn't very surprising:

We have done everything we can to support the airline and left no stone unturned to secure a re-financing package that would have kept our aircraft flying. Even as late as yesterday we had secured a new investment package but the actions of creditors meant we could not continue flying.

The collapse of Zoom is a result of matter beyond our control. Only last year Zoom Airlines made profit, but that turned into a loss in the last year due to the unprecedented increase in the price of aviation fuel and the economic climate.

Zoom says it has contacted other airlines to help stranded passengers get where they're headed. Refunds? Call your credit card company pronto.

Related Stories:
· Zoom Airlines [Official Site]
· It's Doom for Zoom [Airline Biz Blog]
· Zoom Airlines coverage [Jaunted]

[Photo: Wikipedia]

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