Zoom Airlines passengers were left stranded Thursday after the Ottawa-based company suspended operations.
The suspension came without warning and has stranded several hundred of the company's customers in Britain and Canada. Zoom officials said the downturn in the economy and high fuel costs made it impossible to continue operating. The company has begun insolvency action in Canadian and British courts.
Its website was temporarily down on Thursday, but at about 2 p.m. ET, it was back up with a statement announcing the suspension.
"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," Hugh and John Boyle, the founders of Zoom, said according to the website statement.
"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," the statement said.
Planes operated by the airline were grounded earlier this week after the company reportedly failed to pay its bills to governments, suppliers, and the plane's owners. The company apparently owes the airport authority $400,000.
"There are a number of ground support agencies and services as well as the airport authority that are owed some funds from Zoom, so the aircraft is on the ground in Calgary pending resolution with Zoom and the leaseholder as well as the creditors," Wayne Reimer, Calgary airport duty manager, told CP.
A similar situation appears to have also occurred in Glasgow, Scotland, where the airport authority reportedly detained a Boeing 757.
Zoom's website said several airlines have stepped in to offer its stranded passengers "special fares." The website said customers who have prepaid for cancelled flights should contact their debit or credit card companies.
Industry Minister Jim Prentice said Thursday he had no details about Zoom, but has had discussions with representatives of both Air Canada and Westjet about fuel costs.
With files from The Canadian Press
