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Zoom…splatt


 

I really feel for all the hundreds of passenger who’ve been left stranded by Zoom Airlines’ shut down today. Undoubtedly, there will be people who miss vacations, or family reunions because of the carrier’s demise.

Of course, this will come as no consolation to people stuck in airport terminals, much less the employees likely to lose their jobs, but this really is a good thing in the long term, both for the airline industry and for the public. As I argued a couple of weeks ago, we need to see more airlines shut down, and for others to get swallowed up through mergers and acquisitions.
The fact that Zoom was unable to secure new financing to keep flying is, in a way, an encouraging sign, even though its a total drag for those directly affected.


 

Zoom…splatt

  1. But is there really no way to spin out the process of shutting an airline down, even by a couple of days?
    I’ve a budget flight across the Atlantic Saturday, and I’m unnerved by how quickly this all happened.
    Zoom were taking bookings this morning, and I’m sure that some people will only hear about this when they arrive for their flight. Airlines always seem to go out with the metaphorical bang, don’t they?.

  2. I totally agree Jameson. There ought to be some way for airlines to wind down operations in an orderly manner. I would argue it should be la form of bankruptcy protection in which the company can declare that it is going out of business, and its creditors are prevented from seizing assets for, say, 2 weeks, while the airline fulfills current bookings and helps people find alternative arrangements.
    this reminds me of JetsGo and Canada3000, both shut downs that left hundreds stranded.

  3. Could not happen to a worse airline, over the years they were not shy in pulling flight if they were not full ruining holidays left right and centre. Lets not shed a tear for this shoddy airline.

  4. There is no way a privately controlled airline can make money servicing the domestic market. Period. And if it can’t make headway into international markets, then it is just a matter of time before they shut down.

    This is yet another example.

  5. Pity, quite a decent airline. Now I guess some of their customers will go to FlyGlobespan. Rather than placing comments on this website which might be considered libellous, can I suggest that anyone thinking of using this airline checks out http://www.airlinequality.com/Forum/flygspan.htm
    before booking.

  6. I think that we need to see more airlines sprout up. The more competition there is in the airline industry, the more consumers will benefit.

    Competition sways the excess rent in the consumer’s favour. Decreased competition (i.e. monopolies) sways the excess rent in the corporation’s favour.

    Has anyone noticed that as more airlines are shutting down, the customer service from Air Canada has declined drastically, while their prices have increased?

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