Lobster business reeling from Zoom collapse
Last Updated: Friday, August 29, 2008 | 10:41 AM AT
CBC News
The grounding of Zoom Airlines has left a Nova Scotia lobster export business scrambling.
Ryer and Ryer Lobster Ltd. in Indian Harbour sends 75 per cent of its lobsters overseas, much of it on Zoom flights to London so it can be trucked to the lucrative Brussels market.
"Now what do we do? Do we go to Montreal? Do we go back to Air Canada? Air Canada, I think, can't take it all," Dean Ryer told CBC News.
Ottawa-based Zoom Airlines Inc. sought court protection from creditors and suspended operations Thursday, stranding passengers at several airports, including more than 200 people in Halifax.
The company blamed its financial troubles on "horrendous" increases in fuel prices that resulted in a $50-million rise in operating costs in 2007.
The Halifax International Airport Authority, which is owed nearly $200,000 by Zoom, obtained and executed a court order late Thursday allowing it to seize one of the airline's grounded jets. Zoom ran four flights each week through Halifax — two to Glasgow and two to London.
With Zoom's collapse, the airline industry shrinks even further.
Ryer and Ryer Lobster is already reeling from Air Canada's decision to cut flights between Halifax and London from seven to four days a week this fall, citing soaring fuel prices.
Icelandair has shelved its plans for winter service to Halifax for the same reasons.
One business expert suggests there is hope. However, that won't help Dean Ryer soon.
"I think there's going to be less choice in terms of major carriers, but there will always be those entrepreneurs who start up low-cost options that want to be more flexible," said David Wheeler, a professor at Dalhousie University in Halifax.
