Creditor concerns rise in aftermath of Zoom failure

When low-cost trans-Atlantic carrier Zoom Airlines failed late last week, concerns developed almost immediately among creditors of more failures to come, a report in The Financial Times states.

After Zoom’s aircraft were grounded on 28 August, the carried headed for administration and creditors seized the planes that the airline had lease, citing non-payment of the leasing fees as the reason.

Although the no-frills carrier isn’t the first to collapse in this difficult economic climate, analysts are concerned that that this failure could be the signal of a series of bankruptcies to come in the near future among a number of airlines facing financial difficulties.

The same analysts are clarifying that the other recent failures occurred in a completely different segment of the market – the niche business class operators.

MAXJet, Eos and Silverjet failed during the last year, but the newest airline failure involves a mainstream commercial airline, and it is causing great concern among many industry experts. One expert commented: “Airline creditors are twitchy right now.”

His comment follows the drama that played out late last week when BAA, UK airport operator, detained one Zoom jet at Gatwick and one at Glasgow.

Not long afterwards, a departure from Cardiff was cancelled, and by 7:00 pm Zoom announced that its planes were grounded and that it had discontinued operations.

www.flyzoom.com