Zoom aint zooming no more

And another bites the dust...........

Full read: http://www.walletpop.com/article/_a/...-planes/153074

Snip:

TORONTO (Aug. 29) -- Hundreds of Zoom Airlines passengers were
stranded Thursday in Canada and the UK after the cash-strapped
Canadian airline suddenly canceled all of its flights after creditors
took action to get money owed them.

Zoom said the economic downturn and the unprecedented rise in the
price of aviation fuel made it impossible for the privately owned
company to continue operations.
"We have done everything we can to support the airline and left no
stone unturned to secure a refinancing package that would have kept
our aircraft flying," company founders Hugh and John Boyle said in a
statement.
"Even as late as lunchtime today [Thursday] we believed we had secured
a new investment package to ensure future operations but the actions
of creditors meant we could not continue flying."

Boyle said the company was unable to complete the investment package,
leaving the directors of Zoom with no option but to start insolvency
and administration proceedings.

"Duh_OZ" wrote in message
...
And another bites the dust...........

Full read:
http://www.walletpop.com/article/_a/...-planes/153074

Snip:


What gets me is the headline he

http://www.timesonline.co.uk/tol/tra...cle4633302.ece

"Anger of Zoom passengers stranded by collapse of transatlantic budget
airline"

It's almost like they think that this is the result of a con. I'm sure that
the owners of the company are going to lose as much as any of the pax

tim

"tim....." wrote in message
...

"Duh_OZ" wrote in message
...
And another bites the dust...........

Full read:

http://www.walletpop.com/article/_a/...-planes/153074

Snip:


What gets me is the headline he

http://www.timesonline.co.uk/tol/tra...cle4633302.ece

"Anger of Zoom passengers stranded by collapse of transatlantic budget
airline"

It's almost like they think that this is the result of a con. I'm sure
that
the owners of the company are going to lose as much as any of the pax

tim


In pure financial terms (rather than jobs/earnings) it's unlikely that the
owners of Zoom will lose any personal money given that Zoom was a limited
liability company. However passengers that booked using debit (rather than
credit) cards stand to lose all of their money plus the additional expense
of booking alternative flights.

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What sucks for Zoom is that this is the second time around for
most of the employees there, as a fair number of them were former
Canada 3000 employees, and maybe some ex-Royal employees. But former
CMM guys, for sure..

BL.
- --
Brad Littlejohn | Email:
Unix Systems Administrator, |
Web + NewsMaster, BOFH.. Smeghead! | http://www.wizard.com/~tyketto
PGP: 1024D/E319F0BF 6980 AAD6 7329 E9E6 D569 F620 C819 199A E319 F0BF

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tim..... writes:

What gets me is the headline he

http://www.timesonline.co.uk/tol/tra...cle4633302.ece

"Anger of Zoom passengers stranded by collapse of transatlantic budget
airline"

It's almost like they think that this is the result of a con.

Agreed. Even when people pay dirt prices, they expect caviar. Perhaps it
doesn't occur to them that a company really can go out of business if it
doesn't make enough money.

If they don't want to run the risk of the airline on which they're flying
going under, they can travel with another airline that charges enough to cover
its costs. There are no free lunches.

"Nigel" wrote in message
...

"tim....." wrote in message
...

"Duh_OZ" wrote in message
...
And another bites the dust...........

Full read:

http://www.walletpop.com/article/_a/...-planes/153074

Snip:


What gets me is the headline he

http://www.timesonline.co.uk/tol/tra...cle4633302.ece

"Anger of Zoom passengers stranded by collapse of transatlantic budget
airline"

It's almost like they think that this is the result of a con. I'm sure
that
the owners of the company are going to lose as much as any of the pax

tim


In pure financial terms (rather than jobs/earnings) it's unlikely that the
owners of Zoom will lose any personal money given that Zoom was a limited

The directors probably put a chunk of money in up front which they now won't
be getting back. Bank's don't, in the main, lend 300 million to a new
speculative company unless the directors have stumped up first.

They've also lost a 300K (or more) year job that they won't be replacing in
a hurry.

tim

Mxsmanic wrote:

tim..... writes:


What gets me is the headline he

http://www.timesonline.co.uk/tol/tra...cle4633302.ece

"Anger of Zoom passengers stranded by collapse of transatlantic budget
airline"

It's almost like they think that this is the result of a con.


Agreed. Even when people pay dirt prices, they expect caviar. Perhaps it
doesn't occur to them that a company really can go out of business if it
doesn't make enough money.

If they don't want to run the risk of the airline on which they're flying
going under, they can travel with another airline that charges enough to cover
its costs. There are no free lunches.

In recent years, how many airlines in the Zoom markets have been
covering their costs?

mrtravel writes:

In recent years, how many airlines in the Zoom markets have been
covering their costs?

The ones that have stayed in business.

"Mxsmanic" wrote in message
...
mrtravel writes:

In recent years, how many airlines in the Zoom markets have been
covering their costs?

The ones that have stayed in business.

-----------------------------------------------------------------

This just means that they have bigger pockets. The term "last man standing"
comes to mind, they could all be loss making, waiting for the rest to go out
of business so that they can increase prices to make a profit

tim

tim..... writes:

This just means that they have bigger pockets. The term "last man standing"
comes to mind, they could all be loss making, waiting for the rest to go out
of business so that they can increase prices to make a profit

As long as they are in business, it's hard to say how they stay in business
without a careful financial analysis--but they surely are covering their
costs, be it through ticket revenue, the deep pockets of the owner, or
increasing debt.