Refunds row as Zoom passengers remain stranded

Passengers today scrambled to get tickets for alternative flights following the collapse of transatlantic budget airline Zoom.

Some were forced to pay thousands of pounds for new flights.

As airlines such as British Airways and Virgin offered special deals to try to accommodate Zoom travellers, it emerged that some passengers would not get any money back.

Travel organisation Abta called on the British government to require all airlines to provide compensation for all passengers.

As passengers spoke of just how much they would have to fork out to salvage their holidays, Zoom revealed that about 80% of its passengers with outstanding bookings were likely to be able to get refunds.

It said that around 4,500 UK-based customers had made reservations for travel within the next week with Zoom – a UK-Canadian operation which flew from five UK airports and which has ceased all operations after running into financial difficulties.

Of these 4,500 about 650 had been due to travel from a variety of North American and Canadian destinations within the next 24-30 hours.

Those who had paid for air tickets with a credit card or have travelled – or would have travelled – as part of a package holiday are eligible for refunds.

But there is no protection for people who have paid in any other way for a flight-only ticket.

Passengers caught up in the collapse of Zoom included Isobel and Michael Shannon, from Dumfriesshire, Scotland, who said they would have to cancel their two-week holiday to Nova Scotia after failing to find affordable flights today.

They had already paid for accommodation and car hire and were not sure if they were be eligible for a refund. The couple have also paid for 15 days’ car parking at Glasgow airport.

Mrs Shannon, 58, said: “The other airlines are quoting £2,500 and we just can’t do it. We’ll have to cancel our trip but the Canadians need to get home, they are just going to have to pay out.”

Mr Shannon, 61, said: “We appreciate that airlines go bust but what I object to is that the authorities at the airport made no attempt to communicate with passengers.

“BAA would have known about this in good time and they didn’t let us know.”

Helen Steel, 31, was due to travel with her husband, mother and five-month-old daughter to Halifax, Canada, for a holiday yesterday.

She said: “We were here for 7am yesterday and were told at 5.30pm that Zoom had gone under.

“We booked into a hotel and we were on the internet until 11.30pm trying to find flights. Today BA are quoting £2,500 and bmi only have business class seats left.It seems that we’ve been left with no help from anybody.”

Her mother Mary O’Dell, 57, added tearfully: “It’s a desperate situation. It was to be a holiday of a lifetime.”

Abta today called on the British government to require all airlines to provide financial protection for their customers “as the failure of Zoom yesterday has meant that many hundreds of customers are finding that they could be out of pocket or stranded today”.

Abta chief executive Mark Tanzer said: “This failure in a tough economic climate, along with numerous other airline failures this year, highlights the importance of having financial protection in place when you book flights.”

The Civil Aviation Authority (CAA) said its Air Travel Organisers’ Licensing (ATOL) customer-protection scheme does not cover customers who book flights directly with airlines such as Zoom.

It added that UK customers who were due to fly back to the UK were advised to make alternative arrangements with other airlines.

The CAA went on: “Customers with forward bookings who booked using a credit card are advised to contact their credit card company about refunds.

“Customers who paid by debit or charge card should contact their card company for advice about full or a partial refund where only part of the journey has been completed. Customers with travel insurance should check their policy to see whether any airline insolvency cover was provided.”

The CAA added that UK customers who purchased air holiday packages which included Zoom Airlines flights or charter flights from a tour operator should contact their tour operator or travel agent about alternative travel arrangements.

Zoom said an estimated 40,000 passengers, including around 10,400 UK-based people, had made bookings with Zoom over the next year, the majority of which were for 2009 departures.

Zoom chairman Hugh Boyle said: “We are trying to make as many passengers as possible aware of their options in terms of alternative flights and the possibility of securing refunds for the flights they booked.

“There is good availability of alternative flights as we have passed the main holiday period. We believe the majority of passengers who booked with us should be able to secure an alternative flight.

“We have been in contact with other airlines, including BA, Virgin and FlyGlobespan in particular, and they have made clear the availability of alternative flights. We have also listed on the www.flyzoom.com website a list of other airlines which offer alternative services on routes where Zoom operated.

“We would like to reassure people that yesterday every possible effort was made to save the airline and safeguard flights and it was only very late in the day when the actions of suppliers and creditors made it impossible to continue.”