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Zoom plans budget UK-US flights
Low fares carrier Zoom plans to establish UK-US flights to complement its transatlantic network to and from Canada.
The move, expected for 2007, follows Bank of Scotland Growth Equity taking a 7.5% stake in the airline for £5.7 million.
Ottawa-based Zoom was created three years ago by Hugh and John Boyle, who sold Direct Holidays to Airtours in a multi-million pound deal five years previously.
The airline offers a range of flights from Gatwick and four UK regional airports to eight Canadian gateways with prices from as low as £99.
The cash injection will allow Zoom to expand its fleet of five Boeing 767s and add new “non-Canadian” routes from the UK. It will also assist with a rolling fuel hedging package, according to the airline.
Likely new transatlantic routes to be operated by subsidiary Zoom UK include Gatwick to New York and San Francisco, according to a report in The Observer.
A spokesman reportedly said they would be the first dedicated low cost flights to the US since Freddie Laker launched Skytrain in 1977.
Zoom has carried 750,000 passengers between the UK and Canada in three years.
Zoom chairman Hugh Boyle said: “For such a prestigious organisation as Bank of Scotland to take an equity stake is a vote of confidence in the success of Zoom which for the past three years has pioneered the low fares concept on a transatlantic basis between eight Canadian destinations and six European airports.
“The investment by the Bank of Scotland will assist is setting up Zoom UK which will enable us to expand our operations from the UK to non-Canadian destinations. This is a red letter day for the airline which bodes well for our future prospects.”
Bank of Scotland Growth Equity director David Wilson said: “We view Zoom as a successful and innovative carrier with a considerable reputation for quality as well as value for money. It is an exceptional growth opportunity and we are delighted to have made an investment in the company and to assist in its long-term profitable expansion.”
Report by Phil Davies
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