The Bank of Scotland Growth Equity has acquired a 7.5% stake in Zoom Airline as part of a £5.7 million investment package.
As a result of the investment, Zoom - which is owned by travel entrepreneurs Hugh and John Boyle - plans to expand its operations to other worldwide destinations.
Bank of Scotland Growth Equity’s investment will provide additional funds for the start up of a UK-based airline for the Ottawa-based carrier, as well as assisting with a rolling fuel hedging package.
Zoom Director, John Boyle, said: “For such a prestigious organisation as Bank of Scotland to take an equity stake in our airline is a tremendous 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 six European airports and seven Canadian destinations.
The investment by the Bank of Scotland will assist in 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”.
David Wilson, Director of Bank of Scotland Growth Equity, who negotiated the deal 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”.
Hugh and John Boyle made their mark in the travel business by starting Direct Holidays which they built up before selling to Airtours eight years ago in a multi-million pound deal.