Zoom Airlines, a Canadian low-cost carrier based in Ottawa, announced that they would be halting all operations / grounding the fleet and will declare bankruptcy. Several aircraft were detained for missed payments on leases and other fees. It was initially stated that the airline would continue operations, however the carrier later closed down the website and issued a statement saying that they would ground all aircraft. It, like Skybus and other recent bankrupt carriers, have stated that their trading position is a direct consequence of the rising price of oil.
The carrier linked Canada with Europe, and later expanded its route map to the United States, Bermuda, and South America. The carrier operated 3 Boeing 767-300ERs and Boeing 757-200, all of which were previously operated by other carriers, and had different seating configurations (except with 2 767-300ERs). The average fleet age was 15.9 years.
I can’t say I’m surprised that the price of oil has driven yet another carrier out of the industry. I think it’s safe to say that this will not be the last carrier to do so. It’d be wrong to speculate who’s next, however I think we’ll see smaller low-cost carriers driven out of the industry.
Image: flickr.com
