Zoom ceases operation 1800 today.
#61
Re: Zoom ceases operation 1800 today.
Too much of a coincidence for it not to be mean I'm afraid. We've been monitoring prices to Fredericton and Halifax almost daily and Air Transat/Canadian Affair went up £400 overnight for two adults and two children. It's obviously a money spinning racket for them as they were able to sell seats well enough before the Zoom "crash" at their standard price so why the sudden need to jack up the prices by an incredible 30%+. Fuel prices didn't rise that much over night if any.
#62
BE Enthusiast
Joined: Jan 2007
Location: Leeds
Posts: 316
Re: Zoom ceases operation 1800 today.
Not defending them in any way but they didn't know it was going to happen.
Yes they were in debt, yes they owed a lot of people a lot of money but they were negotiating more financing.
It was a refueller in Calgary yesterday that started the whole domino effect that culminated in them being forced out of business today.
Yes they were in debt, yes they owed a lot of people a lot of money but they were negotiating more financing.
It was a refueller in Calgary yesterday that started the whole domino effect that culminated in them being forced out of business today.
This is the 3rd time we have tried to get to Canada this year,
we are booked for NS 18th oct with Zoom, maybe its a sign
Sorry for all those stranded and those people not going to see loved ones,
at least ours was only a recci, wonder what happens about everything else people have booked and paid deposits for etc ?
we are booked for NS 18th oct with Zoom, maybe its a sign
Sorry for all those stranded and those people not going to see loved ones,
at least ours was only a recci, wonder what happens about everything else people have booked and paid deposits for etc ?
What do they say - what's meant to be will be........
anyway, sorry if I've upset anyone - I used to be a travel agent, when I was still a babe, and people sometimes forget the people on the ground that have also been affected.....
#63
Re: Zoom ceases operation 1800 today.
I'm afraid the reaction in our household was one of distinct schadenfreude. We had a nasty experience with Zoom last summer, when my wife was left stranded at Vancouver. Granted, it was at the time of the Glasgow airport attack and so the flight had to be delayed, but Zoom couldn't care less about keeping customers informed. My wife resolved that no one in our immediate or extended families would fly with Zoom ever again.
My heartfelt sympathies for both the passengers and the people on the ground who have been shafted, though. At least for the passengers, they'll be able to get their money back if they booked with a credit card. No replacement, but at least they'll get the money.
A little thought: Since we're now missing a budget transatlantic airline flying to destinations in Canada, wouldn't this be an opportunity for Westjet to step into the breach? I know with the high price of oil right now that it's unlikely, but a man can dream of flying with one airline from Glasgow to Saskatoon …
My heartfelt sympathies for both the passengers and the people on the ground who have been shafted, though. At least for the passengers, they'll be able to get their money back if they booked with a credit card. No replacement, but at least they'll get the money.
A little thought: Since we're now missing a budget transatlantic airline flying to destinations in Canada, wouldn't this be an opportunity for Westjet to step into the breach? I know with the high price of oil right now that it's unlikely, but a man can dream of flying with one airline from Glasgow to Saskatoon …
#64
Joined: Apr 2005
Posts: 9,606
Re: Zoom ceases operation 1800 today.
A little thought: Since we're now missing a budget transatlantic airline flying to destinations in Canada, wouldn't this be an opportunity for Westjet to step into the breach? I know with the high price of oil right now that it's unlikely, but a man can dream of flying with one airline from Glasgow to Saskatoon …
#65
Wanna-be Canadian
Joined: May 2008
Posts: 176
Re: Zoom ceases operation 1800 today.
This situation sucks...
...lets just hope that Zoom gets the investment it needs, or, more likely, it's taken over by another budget airline.
There are many low budget carriers in Europe & N.A who would give there right arm for this established airline.
Don't totally give up hope just yet - Zoom is likely to be sold-on and operating again within a month or so.
Mark.
...lets just hope that Zoom gets the investment it needs, or, more likely, it's taken over by another budget airline.
There are many low budget carriers in Europe & N.A who would give there right arm for this established airline.
Don't totally give up hope just yet - Zoom is likely to be sold-on and operating again within a month or so.
Mark.
#66
Analyst for hire
Joined: Jan 2007
Location: Toronto
Posts: 1,698
Re: Zoom ceases operation 1800 today.
Shocking news and more fallout is that Air Transat have taken advantage by putting up their fares to similar routes by 32% in the space of a couple of days. And if that wasn't emough for them...their share price has rocketted by 17% since the Zoom news. Where are the fair trading people now? Talk about ripping off the customer. Thanks a lot Air Transat :curse:
#67
Forum Regular
Joined: Jan 2005
Location: In a dream!
Posts: 219
Re: Zoom ceases operation 1800 today.
Most airlines have ticket pricing control software that deals with the prices. If they see a sudden demand in tickets, they'll increase the fares to make more money out of this sudden demand for a limited commodity. You can complain about it, but welcome to the free market economy. It's capitalism, and the way the western world turns I'm afraid, simply supply and demand.
#68
Banned
Joined: Aug 2007
Location: New Caledonia
Posts: 1,810
Re: Zoom ceases operation 1800 today.
This situation sucks...
...lets just hope that Zoom gets the investment it needs, or, more likely, it's taken over by another budget airline.
There are many low budget carriers in Europe & N.A who would give there right arm for this established airline.
Don't totally give up hope just yet - Zoom is likely to be sold-on and operating again within a month or so.
Mark.
...lets just hope that Zoom gets the investment it needs, or, more likely, it's taken over by another budget airline.
There are many low budget carriers in Europe & N.A who would give there right arm for this established airline.
Don't totally give up hope just yet - Zoom is likely to be sold-on and operating again within a month or so.
Mark.
With so many airlines struggling right now, I don't see a rush to pick it up. United announced yesterday that they are stopping meal service on some transatlantic flights to save costs. The problem with budget airlines is they are not low cost. The cost of operating a 767 is the same whoever runs it. However the lower the fares, the lower the profit, the more vulnerable they are to spikes in costs, without significant increases in fares, increasing freight revenue or reducing their labour and indirect costs further, there is only so far you can do this. In the short term low fares seem great, but they are not necessarily to the advantage of the traveler, as we saw yesterday and on several other occasions over the last 5 years.
There have been complaints about why they kept taking bookings when they knew they were in trouble, they were trying to stay out of trouble and restructure. Announce that your business is in trouble, while you're still operating is a sure way to guarantee going out of business. As soon as the business was not recoverable they voluntarily shut down operations. It is hard for those affected, hopefully refunds will come and those stranded will get to their destinations safely.
#69
Re: Zoom ceases operation 1800 today.
There have been complaints about why they kept taking bookings when they knew they were in trouble, they were trying to stay out of trouble and restructure. Announce that your business is in trouble, while you're still operating is a sure way to guarantee going out of business. As soon as the business was not recoverable they voluntarily shut down operations. It is hard for those affected, hopefully refunds will come and those stranded will get to their destinations safely.
This was all precipitated by one of the fuel companies demanding payment for overdue bills. Once this happened the leasing company started getting involved ,causing two planes to be impounded. Then suddenly everyone started going "me too , me too". Thus starting a snowball effect.
I had been following a thread on a flyers forum where there were rumours that zoom had an offer from new owners for several weeks now. I genuiuely believe that the company was on the verge of a "rescue package" when this happened
And for those of you who think that this only happens to low cost carriers . SWissair went belly up a few years ago , the public may not have noticed much other than rebranding and hastily rebooked flights but the workers sure did. Air Canada was (still is ?) flying under bankrupcy protection for years while they re financed as were (are?) most of the large american carriers.
#70
Banned
Joined: Aug 2007
Location: New Caledonia
Posts: 1,810
Re: Zoom ceases operation 1800 today.
This was all precipitated by one of the fuel companies demanding payment for overdue bills. Once this happened the leasing company started getting involved ,causing two planes to be impounded. Then suddenly everyone started going "me too , me too". Thus starting a snowball effect.
I had been following a thread on a flyers forum where there were rumours that zoom had an offer from new owners for several weeks now. I genuiuely believe that the company was on the verge of a "rescue package" when this happened
And for those of you who think that this only happens to low cost carriers . SWissair went belly up a few years ago , the public may not have noticed much other than rebranding and hastily rebooked flights but the workers sure did. Air Canada was (still is ?) flying under bankrupcy protection for years while they re financed as were (are?) most of the large american carriers.
I had been following a thread on a flyers forum where there were rumours that zoom had an offer from new owners for several weeks now. I genuiuely believe that the company was on the verge of a "rescue package" when this happened
And for those of you who think that this only happens to low cost carriers . SWissair went belly up a few years ago , the public may not have noticed much other than rebranding and hastily rebooked flights but the workers sure did. Air Canada was (still is ?) flying under bankrupcy protection for years while they re financed as were (are?) most of the large american carriers.
A refueller would not fuel Zoom aircraft unless paid in cash ($60,000 a fill up). A deal was almost done for refinancing, but the creditors pretty much pulled the plug.
There is a big difference between low cost and budget airlines. Low cost can be quite profitable, they keep costs to a minimum and profits at a manageable level. If costs are disproportionate to profits, eventually there is a problem. Air Canada had a similar situation, they are no longer on bankruptcy protection, several large American airlines have found themselves in similar situations, many others have ceased operations.
The fallout is not over yet.
#71
Forum Regular
Joined: Jan 2006
Posts: 147
Re: Zoom ceases operation 1800 today.
Look like Air Canada are upping their prices too, Halifax to Gatwick this morning was $969 (return) and now its $1112 for the same flight.
If only i'd have brought my credit card to work this morning! I'm going to call them and thank them for me now not being able to go to my grandmothers funeral.
If only i'd have brought my credit card to work this morning! I'm going to call them and thank them for me now not being able to go to my grandmothers funeral.
#72
Re: Zoom ceases operation 1800 today.
If the re-finance went thru at the last minute then they could fly.
But also they probably didn't tell their staff and they wont be paying any wages as their creditors are ahead of staff wages and holiday pay etc.
The only winners in all of this are LAWYERS.
#73
Re: Zoom ceases operation 1800 today.
Yep - too true.
I'm amazed at the number of people on here that are still booking with Canadian Affair / Air Transat and alike. I'm expecting another airline to go under pretty soon. It's either that or raise prices. BA was no more expensive so I've booked with them.....
I'm amazed at the number of people on here that are still booking with Canadian Affair / Air Transat and alike. I'm expecting another airline to go under pretty soon. It's either that or raise prices. BA was no more expensive so I've booked with them.....
#74
Wanna-be Canadian
Joined: May 2008
Posts: 176
Re: Zoom ceases operation 1800 today.
" Don't count on that. They have handed their AOC back to Transport Canada, the leases on the aircraft are canceled, so they don't have any aircraft now and the profitable routes will be taken over quickly by others. Zoom is only in name now. "
You may be right, but I reckon other budget/low cost carrier's will be very very interested in acquiring Zoom for several reasons.
Like you said, Zoom own valuable take-off and landing slots at Gatwick and elsewhere. These slots alone are worth tens, if not hundreds of millions of pounds.
This, added to no or few existing Zoom leased aircraft gives a new buyer flexible options where, if desired, they could move current grounded aircraft to the Zoom routes, and if needed, there excess staff.
Currently, RyanAir carries more passengers annually than any other carrier on the planet - the MD has stated that they are in a strong cash position, so much so they are reducing prices to drive low cost & budget competitors within the E.U out of business.
An existing, successful carrier with a good business model has large economies of scale, this, with existing sales, marketing, & reservation staff will dramatically reduce the costs of running Zoom and thus make it more profitable.
As European budget & low cost airlines run out of routes within the EU which they can expand into, and thus keep there share holders happy and there share prices high, the only option to continue expansion is to look beyond the EU and at new markets and continents, and Zoom fits this urgent need nicely.
And don't forget, an existing E.U carrier would have the benefit of selling even more of there existing E.U intercontinental routes to new Zoom passengers flying in from N.A. It's a win - win IMO.
Many existing low cost & budget airlines will be very interested in acquiring Zoom.
This said, I wouldn't be surprised if an existing mid/up market carrier attempts to pay a premium, and then brake's up Zoom, with the intention of stopping low cost & budget carriers from doing the above, and in the process protecting there current market share and deterring competition.
M.
You may be right, but I reckon other budget/low cost carrier's will be very very interested in acquiring Zoom for several reasons.
Like you said, Zoom own valuable take-off and landing slots at Gatwick and elsewhere. These slots alone are worth tens, if not hundreds of millions of pounds.
This, added to no or few existing Zoom leased aircraft gives a new buyer flexible options where, if desired, they could move current grounded aircraft to the Zoom routes, and if needed, there excess staff.
Currently, RyanAir carries more passengers annually than any other carrier on the planet - the MD has stated that they are in a strong cash position, so much so they are reducing prices to drive low cost & budget competitors within the E.U out of business.
An existing, successful carrier with a good business model has large economies of scale, this, with existing sales, marketing, & reservation staff will dramatically reduce the costs of running Zoom and thus make it more profitable.
As European budget & low cost airlines run out of routes within the EU which they can expand into, and thus keep there share holders happy and there share prices high, the only option to continue expansion is to look beyond the EU and at new markets and continents, and Zoom fits this urgent need nicely.
And don't forget, an existing E.U carrier would have the benefit of selling even more of there existing E.U intercontinental routes to new Zoom passengers flying in from N.A. It's a win - win IMO.
Many existing low cost & budget airlines will be very interested in acquiring Zoom.
This said, I wouldn't be surprised if an existing mid/up market carrier attempts to pay a premium, and then brake's up Zoom, with the intention of stopping low cost & budget carriers from doing the above, and in the process protecting there current market share and deterring competition.
M.
#75
Just Joined
Joined: Jul 2008
Location: Northamptonshire
Posts: 14
Re: Zoom ceases operation 1800 today.
Too much of a coincidence for it not to be mean I'm afraid. We've been monitoring prices to Fredericton and Halifax almost daily and Air Transat/Canadian Affair went up £400 overnight for two adults and two children. It's obviously a money spinning racket for them as they were able to sell seats well enough before the Zoom "crash" at their standard price so why the sudden need to jack up the prices by an incredible 30%+. Fuel prices didn't rise that much over night if any.