Some Zoom passengers will not get their money back

Zoom, owned by Lanarkshire travel entrepreneurs John and Hugh Boyle, suspended operations on Thursday evening after soaring fuel costs crippled its finances.

Its collapse left some 4500 UK nationals stranded on either side of the Atlantic, including families trying to attend weddings and funerals and Rangers' new signing Maurice Edu, who was stuck in Toronto.

Meanwhile, in another sign of the worsening crisis hitting the airline industry, Alitalia said yesterday that it has filed for bankruptcy protection, taking the first step in a plan to restructure and downsize. Italy's failing national carrier has asked the government to appoint an administrator and has declared insolvency to a Rome court.

Hugh Boyle, Zoom's chairman and majority shareholder, yesterday said: "We are trying to make as many passengers as possible aware of their options in terms of alternative flights and the possibility of securing refunds for the flights they booked with Zoom.

"As things stand, there is good availability of alternative flights as we have passed the main holiday period. We believe the majority of passengers who booked with us should be able to secure an alternative flight.

"We have been in contact with other airlines including BA, Virgin and flyglobespan, in particular, and they have made clear the availability of alternative flights."

Zoom said it believed the majority of fliers would get their money back, including all of those who booked through a credit card or a travel agency. Some customers will be entitled to insurance payouts.