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   Web Issue 3322 December 4 2008   
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The Herald

Hundreds stranded as Glasgow-Canada flight detained
The Zoom airline passenger aircraft sitting on the apron at Glasgow Airport.
The Zoom airline passenger aircraft sitting on the apron at Glasgow Airport.

The travel plans of hundreds of air passengers in Scotland were thrown into chaos today after a transatlantic low-fare airline had one of its planes detained by UK authorities over the non-payment of charges.

Glasgow airport said it had been instructed by the UK's Civil Aviation Authority to detain a Canada-bound Boeing 757 operated by Zoom Airlines.

The company is now seeking protection from its creditors by going into administration and has blamed the crisis on the steep rise in the cost of fuel.

BAA Glasgow said today's matter concerned the non-payment of charges to European air traffic control company Eurocontrol and to the Uk's air traffic control company Nats.

BAA said it had also imposed a detention order in respect of charges owed to BAA Glasgow but that this order had now been lifted.

The detained flight had been due to leave for the Canadian cities of Halifax and Ottawa at 10.55am today.

BAA said another Zoom flight, which should have left for Vancouver at 12.40pm today, had also been delayed.

BAA added: "Discussions are under way to resolve the matter. Until then, the departing aircraft (travelling to Halifax and Ottawa) is subject to delay until further notice. A later flight to Vancouver....is also delayed.

"BAA is working with Zoom Airlines to provide support and advice for passengers. Passengers intending to fly with Zoom Airlines should check the status of their flight with the airline.

Today's problems follow the grounding of a Zoom flight from Paris at Calgary airport in Canada yesterday.

A Zoom spokesman said today that the Calgary incident, in which around 70 passengers were flown on to Vancouver with another airline, had involved "issues" with the company from whom Zoom was leasing the plane.

Calgary airport officials were quoted as saying that Zoom owed money to the airport and to the leasing company, adding that the company had terminated its lease with Zoom.

Zoom flies from Glasgow, Gatwick, Manchester, Cardiff and Belfast airports as well as from European airports to a number of North American destinations.

In April, John Boyle, the millionaire co-owner of Zoom, said its finances were "robust" despite fuel price pressures.

He dismissed a report that the long-haul low-fares transatlantic airline may be about to run out of equity funds.

Mr Boyle, who also owns Motherwell Football Club, said: "There is certainly no burning issue about finance at the present time. We have got a reasonably robust position."

Mr Boyle and his brother Hugh set up Zoom six years ago after selling Direct Holidays to Airtours for £84m.

Zoom said later that it had sought "creditor protection" by filing notices of intention to appoint an administrator in both the UK and Canada.

The airline added that it was continuing to operate services and was working to get its flights back on schedule.

Apologising to passengers, Zoom executive chairman Hugh Boyle said the company's trading position was due to to the "horrendous increase" in aviation fuel prices and the economic climate.

Mr Boyle said: "Zoom Airlines Ltd based at Gatwick and Zoom Airlines Inc based in Ottawa, Canada, have sought creditor protection by filing legal notices of intention to appoint an administrator in both the UK and Canada.

This situation has resulted in delays for passengers last night and today and we are working extremely hard to get our flights back on schedule. We sincerely apologise for the inconvenience this has caused passengers.Our trading position is a direct consequence of the horrendous increase in the price of aviation fuel and the economic climate
Hugh Boyle

"The airline's flights will continue to operate and the decision to instigate creditor protection proceedings means that the demands of existing creditors are frozen while we continue negotiations on an investment package which already are at an advanced stage."

He went on: "This situation has resulted in delays for passengers last night and today and we are working extremely hard to get our flights back on schedule. We sincerely apologise for the inconvenience this has caused passengers.

"Our trading position is a direct consequence of the horrendous increase in the price of aviation fuel and the economic climate. The rise in the price of fuel resulted in a 50 million dollar increase in our operating costs during the last year alone and that coupled with the general economic downturn has led to difficulties which are being felt throughout the industry."

Zoom said that it had experienced operational difficulties with a flight to Vancouver on Wednesday which stopped off at Calgary yesterday as a result of an issue regarding the leasing of the aircraft. The 69 passengers who were travelling on to Vancouver from Calgary were found an alternative flight from Calgary to Vancouver and suffered a short delay.

An airline spokesman said: "This had a knock-on effect on services, we are still incurring some delays to services today. However, we are striving to get everything back on track as soon as possible."

A BAA spokesman said 361 passengers at Glasgow Airport had been affected by the situation.

He added that 205 passengers booked on the Halifax and Ottawa flight were currently in the departure lounge at Glasgow Airport as discussions to resolve the matter continued.

The spokesman said a further 156 passengers booked on today's 12.40 Glasgow to Vancouver flight were subject to a 12-hour delay, as their plane had not yet left Canada.

At the airport there was confusion and frustration as passengers tried to clarify what was happening with their flights.

Edinburgh University student Craig Forster is due to begin a year-long course at university in Calgary on Monday.

He said: "We were initially told the plane was delayed because of technical problems.

"After that we heard it was something to do with payment problems.

"Some people here are very angry and there seems to be a complete lack of information.

"It's quite frustrating knowing that the plane is on the tarmac, but that we can't get on it."

Jim McGrory, 62, from St Andrews, added: "When I arrived there was a large queue at the Zoom office. Eventually we were told there was a delay because of a financial problem of some sort.

"We have not been offered any compensation or help to find an alternative route.

"I have to be in Calgary this weekend, so I've just spent £600 for a plane ticket to fly with a different airline.

"I think it's been handled very badly. If I handled my own business like that I wouldn't have one."

James Brown, from Glasgow, said: "Myself and my wife are booked for three days in Vancouver, then we're travelling through the Rockies to Calgary.

"If there are any further problems with our flight then that will effectively mean our holiday is ruined.

"The communication is extremely poor."


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