Zoom goes bust

Transatlantic airline Zoom has suspended all flights last night due to financial problems, leaving hundreds of travellers in the UK, Canada and the US stranded.

The low-cost carrier has blamed the "horrendous" cost of jet fuel and the slowing economic environment as it looks to go into administration.

Hugh and John Boyle, the founders of Zoom, expressed regret at the situation in a statement today.

"We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights," they said.

Zoom insists it has been desperately trying to secure a "new investment package but the actions of creditors meant we could not continue flying".

A Zoom aircraft was detained in the Canadian city of Calgary on Wednesday and another plane was detained at Glasgow airport yesterday as airport operators sought to force the payment of air traffic control fees.

The airline was still accepting bookings yesterday and now advises customers to refer to their credit or debit card companies to apply for a refund.

People who have Zoom flights booked in the UK as part of a holiday package may be able to make a claim through their holiday company under the Civil Aviation Authority's (CAA) Air Travel Organiser's Licence scheme.

British Airways and Virgin Atlantic are offering special fares to assist Zoom customers who have been stranded.