Canadian-British trans-Atlantic discounter Zoom Airlines, which made waves when it started flying from New York to London, has canceled all flights and started bankruptcy proceedings.

Their homepage is yet another airline tombstone, a statement from the CEO that the airline is belly-up. (Technically, it’s two airlines, a British company and a Canadian company. Both are insolvent.)

From their statement:

For customers who have future travel plans involving a Zoom flight for which reservations and payment have been made, you should refer to your credit or debit card company to apply for a refund. We have set out details of other airlines who operate the same or similar routes to those flown with Zoom in the hope that this may assist you in making alternative travel plans to replace the flights that you had booked with Zoom.
[...]
We have been advised that British Airways and Virgin Atlantic are graciously offering special fares to assist Zoom customers that have been displaced by the suspension of our services.

As I write this, there is not yet any information about these special fares on either the British Airways or Virgin Atlantic websites. Note, however, that this sounds like replacement tickets, and does not suggest that BA or VS will accept Zoom tickets as-is.

If you are in the middle of an already-started itinerary, call these airlines to see what they can do for you. If your travels haven’t started yet, call your credit card company and seek a refund. Fast. Now. Get on it. Go!

Related:
- Trans-Atlantic low fare competition heating up: Zoom and Ryanair
- Zoom across the Atlantic: Low-cost airline coming London-New York?

For the last year, the big story on international travel was the all-business class airlines — Maxjet, Eos Airlines, Silverjet, L’Avion, and the (defunct?) MiMa. But the other end of the travel spectrum — the no-frills economy class travel segment — saw two major steps forward this week.

Zoom, the Canadian-British discounter, has jumped its earlier hurdles and received approval to fly from London-Gatwick to New York-JFK. Flights are scheduled to start June 21, 2007.

Zoom’s service onboard is generally well-liked, though you need to be careful and read the fine print if you want to avoid add-on fees. Baggage policy in particular is a potential snag: You can only check 44 pounds total (not per suitcase) without incurring a surcharge. Other airlines offer 50 pounds each for two bags. Better pack light.

Separately, European uber-discounter Ryanair is reportedly getting into the trans-Atlantic game, using the same pricing model that they’re famous for: Crazy-low fares, with add-ons for everything else, from checked bags, to beverages, to mandatory surcharges for wheelchair service for all passengers.

The new airline technically won’t be part of the European operations of Ryanair, but will stand alone. A fleet of up to 50 Airbus A350s or Boeing 787s, neither of which are actually being built yet, would ferry passengers over the ocean for as little as $12 plus fees and add-ons.

Unlike Zoom, which will fly to JFK, one of the busiest international airports in the world, the new Ryanair subsidiary would fly to smaller ports like Baltimore, Providence, and Islip, NY.

It’ll be interesting to see how other airlines will respond — either by attempting to lobby Congress to somehow regulate the competition out of existence, or by actually treating the newcomers as real competition. With Zoom and Ryanair coming to North American shores, and with Spirit leading the way in homegrown nickel-and-diming, I’m not holding out much hope for real improvement in service.

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For several years, Canadians have flown their home-grown international discount airline, Zoom, to Europe at prices that often severely undercut Air Canada and the European carriers.

Now, Zoom wants to be let out of its cage and be allowed to fly to Europe from the United States as well.

Zoom’s desired inaugural U.S. route is the busy London-New York corridor. This is the same city pair that all-business class carriers like Maxjet, Eos, and Silverjet are flying, competing with the major airlines for the big bucks, but this is at the opposite end of the luxury spectrum. Travel Weekly (sub) reports that a UK-based Zoom subsidiary — Zoom UK — has applied to the U.S. Department of Transportation to start flights on June 22 between JFK and London-Gatwick.

But beware: Zoom functions more like a European discount airline than an American one. Assuming that they keep the same model as their Canadian operations, you’ll get a low fare, but there may be add-ons. (They do feed you, though.) For example, Zoom has a low weight limit per suitcase for its luggage, and requires a pretty hefty surcharge if you go over the limit. Seat assignments will cost you a fee.

The premium economy option may be worth it, depending on the upcharge, since it gives higher luggage limits, more legroom, seating assignments, free headsets, and free booze. There’s no first or business class.

Not the posh experience of an Eos, to be sure, but if you’re young, cheap, and not spoiled rotten, this could a cheap way to hop the pond.

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