Zoom Airline Collapse: Passengers Stranded

Zoom, which was founded by Scottish millionaires John and Hugh Boyle, said it regretted the inconvenience caused to passengers, many of whom may not be able to claim compensation for their cancelled flights.

John and Hugh Boyle said in a statement: "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.

"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. Even as late as today 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. Only last year Zoom Airlines made profit, but that turned into a loss in the last year due to the unprecedented increase in the price of aviation fuel and the economic climate.

"The price of oil resulted in our fuel bill jumping by nearly $50 million in one year and we could not recover that from passengers who had already booked their flights."

"We were told to be here at 9 a.m. sharp to check in, but no one's here," said passenger Eileen Moss at Ottawa International Airport on Thursday morning. Zoom staffers arrived around 9:30 a.m. to a maelstrom of unhappy passengers, but quickly left the counter for a "company briefing."

Visibly distraught airline employees were later seen leaving the company's Ottawa headquarters.

The budget airline has sought protection from its creditors and has begun insolvency proceedings. Zoom Airlines has both a Canadian and British arm. Both companies are affected.