p39-41 air sep26 23/9/08 17:39 Page 40
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ttglive.com
Hinkles says he had never heard of IPP, but its people with an apparent level of credibility but
action meant the vast majority of travel agents who are not involved in the business.
using Zoom stopped selling the airline, wiping “The demands that they put forward to rem-
out 10% of his turnover. edy what they saw as an issue were so outra-
He spoke to IPP and was told that for cover to geous that I can’t think any airline would comply.
be reinstated it would need a copy of Zoom’s “Safi is a good thing for the customer but not
monthly management accounts or a sum of cash. if it can do what it did to Zoom. It can’t distort
Hinkles refused, as only the CAA and Zoom’s the workings of the market.”
auditors were allowed to see management
accounts; he believes any other airline would Cashflow problems
have done the same. IPP’s actions particularly frustrate Hinkles be-
He admits to still feeling “enraged” by IPP’s cause Zoom had an unusual arrangement with
actions, which he feels was one of the three main virtually all its travel agents in which they were
reasons for Zoom’s demise (TTG September 19). not invoiced until their passengers had departed.
He considered taking legal action when Zoom No money was handed over in advance so the
was still flying, and thought he had a case, but risks to the agent of Zoom failing were minimal.
the matter is now out of his hands and it is for Hinkles is not claiming IPP’s action was the
the administrators to decide. sole reason for Zoom’s failure. But he says it
Hinkles is instead focusing his anger on intensified problems of cashflow caused by fuel
persuading the industry to adopt a different prices and weakening demand.
system of protection for scheduled carriers “Fuel prices went from $65 a barrel in June
governed by the CAA. 2007 when we started operations to $147 a
“It would not necessarily take these people barrel in July this year, a move the world
[insurers] out of the loop but it would mean their economy had never really seen before.
actions would be controlled,” he said. “Pure volatility of the price made it very
“I just think what happened was wrong and difficult to hedge. Second, the general slowdown
that no other airline should ever be placed in that and customers booking later made it more
position of having its business broadsided by difficult to predict what demand was going Zoom’s two former UK-based Boeing 767s are now in storage at Dothan Air For
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