| GEO Business | | Rising fuel costs sends Canadian airline into tailspin | Updated at: 0728 PST, Friday, August 29, 2008
OTTAWA: Low-cost Zoom Airline said Thursday it is seeking court protection from its Canadian and British creditors, as two of its planes were grounded in Calgary and Glasgow and other flights were disrupted.
"We have sought creditor protection by filing legal notices of intention to appoint an administrator in both the United Kingdom and Canada," Hugh Boyle, executive chairman of the Ottawa-based airline, said in a statement.
The airline's woes, he added, were "a direct consequence of the horrendous increase in the price of aviation fuel and the economic climate."
One of its planes was grounded in Glasgow for failing to pay airport fees, while another in Calgary was yanked out of service by a company that leased the jet to the carrier, leaving passengers stranded in both cities, said reports.
Zoom's other flights in North America, Europe and the Caribbean were to continue to operate while the company negotiates with its creditors, Boyle said. |  |
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