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Zoom's grounding leaves 1,200 stuck in Caribbean

Toronto-based tour operator struggling to bring customers home after carrier's planes stopped flying

Thursday, September 04, 2008

At least 1,200 Canadians have been stranded in the Caribbean after the shutdown of Zoom Airlines ruined the best-laid plans of a Toronto-based tour operator.

Since Ottawa-based Zoom's grounding last Thursday, G.G. Tours has been scrambling to get its customers back to Canada, lining up charter planes to replace Zoom's service.

Hundreds of travellers had to wait an extra two to four days to catch make-up flights departing from Trinidad and Jamaica, and now the focus shifts to finding planes for remaining customers in Grenada and Jamaica, even as another storm looms.

John Gideon, wholesale manager at G.G. Tours, said in an interview yesterday that he secured flights for 800 passengers over the past week, but another 1,200 to 1,500 customers are forecast to return to Canada, mostly over the next several days.

"We're doing our best, but we have a long way to go. It's very stressful and daunting for us," Mr. Gideon said. "Zoom stranded these people at a very inopportune time. This time of the year is very busy, trying to bring everybody back for school and whatnot."

Zoom's abrupt closing has hit the family-owned business hard, as Mr. Gideon and his father, George, have already cancelled 500 G.G. Tours bookings in September for sun destinations and will be issuing refunds. The Gideons have also been forced to absorb the costs of using other carriers for "repatriation flights" back to Canada, including hiring Air Transat for Jamaica flights and Skyservice Airlines Inc. for Trinidad and Guyana.

Extreme weather conditions have complicated matters, with hurricane Gustav earlier this week and now tropical storm Hanna gathering speed, making it hard to confirm charter flights.

"Because of the brewing storm, the airlines can't guarantee times and dates for us. If they can't find those slots to fly for us, we'll just have to wait for something available," said John Gideon, whose grandfather founded the tour company more than 45 years ago.

An estimated 4,500 Zoom passengers were stranded last week, and at least 40,000 customers were left holding worthless tickets after the discount carrier collapsed amid high fuel prices and a slowing economy dampened travel demand.

Canadian Transportation Agency spokesman Jadrino Huot said the regulator approved the two earlier Skyservice flights, and will fast-track further charters, as needed, to help stranded passengers.

Zoom is the 27th airline to have either shut down, suspended operations or go to bankruptcy court this year, the International Air Transport Association said yesterday.

IATA director-general Giovanni Bisignani said global carriers are headed for a combined $5.2-billion (U.S.) loss this year, assuming crude oil prices average $113 a barrel. In June, IATA said losses among international carriers could range from $2.3-billion to $6.1-billion in 2008.

For 2009, major airlines could lose $4.1-billion, based on a forecast of oil averaging $110 a barrel, Mr. Bisignani said during a conference call from Montreal.

Stubbornly high oil prices and weakening travel demand are a "toxic combination" eroding profitability, he said.

Zoom co-founders Hugh and John Boyle, who blamed runaway fuel bills and faltering ticket sales for the airline's demise, posted an apology on their website last Thursday. "We are desperately sorry for the inconvenience and disappointment that this will cause passengers and those who have booked flights," they wrote.

© The Globe and Mail


 

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