Zoom Airlines gets O.K. for U.K. sales of proposed U.S. service (04/04/2007)
By Andrew Compart
Zoom Airlines, a low-cost, low-fare transatlantic carrier, received Transportation Dept. approval to begin marketing and selling tickets for its proposed London-New York service -- but for now, only in the U.K.
The approval also could be an indication Zoom is likely to overcome Delta's objections to its application to offer service between London (Gatwick) and New York (Kennedy).
Zoom filed an application with the DOT Jan. 22 asking for permission that would let it start daily service June 7 between London (Gatwick) and New York (Kennedy) using 767 aircraft on the route.
Zoom Airlines was established as a Canadian carrier and offers scheduled service from eight Canadian cities to five U.K. destinations, including London (Gatwick), and from four Canadian cities to Paris. But last August the Bank of Scotland acquired a minority stake in Zoom for about $11 million, and at the time the company said it would use the money to establish Zoom U.K. to fly to non-Canadian destinations, such as the U.S.
Delta has challenged whether Zoom could be considered a U.K. national, which is a prerequisite for getting U.S.-U.K. authority under the aviation agreement between the two countries.
Zoom argues not only that it is -- as evidenced in part by the U.K. citizenship of its founder and chairman and its incorporation in the U.K. as a separate legal entity from Zoom Airlines of Canada -- but also that under the U.S.-U.K. agreement it is up to the U.K. to decide whether the airline qualifies or not.
Zoom filed a request March 6 for DOT approval to let it begin sales and marketing in the U.K. for the proposed U.S. service.
In approving that request April 2, the DOT noted that the U.K. Civil Aviation Authority said it has provisionally concluded that Zoom "can demonstrate majority ownership and effective control by nationals of the United Kingdom." It also noted that U.K. authorities have given approval for the U.K. sales and marketing to begin.
The DOT is waiting for the U.K. ruling on the carrier's fitness and citizenship before making a decision on granting U.S. regulatory approval for the service.
Reply With Quote
Originally Posted by Iberia A340-600
Bookmarks