Canadian discount transatlantic airline Zoom is the latest casualty as it
cancelled all flights and began bankruptcy proceedings.  In the same week
Irish airline Aer Lingus anticipates losses into next year and Italy's prime
minister unveiled rescue plans to save struggling flagship Alitalia.

Sky-high fuel costs and a slowing economy have grounded Canadian
transatlantic airline Zoom.

The carrier, which employs more than 600 staff,  halted all flights after
failing to find a financial lifeline to stay airborne.

Thousands of people with advance bookings into next year will lose their
flights.

Hundreds of passengers have been left stranded and out of pocket.

Unidentified passenger saying (English):
"I just feel sick.  We are going out for our holiday to Vancouver
and then to see my brother.  So it's a three-week holiday and this is the
start of it."

Unidentified passenger saying:
"They started telling us, basically, that they were bankrupt and
there was nothing they could do.  So everybody's running around trying to
figure out 'how and I getting home?"

Unidentified passenger saying:
"We don't know where we're at right now and we don't know how we're
getting home."

Some travel experts are warning Zoom won't be the last casualty.

Simon Calder, travel expert, saying :
"It's not been a bad summer for a lot of airlines but now, in the
autumn, when cash isn't coming in but the bills are, I fear that you and I
will be seeing more of this kind of collapse.

Irish carrier Aer Lingus is also feeling the pinch.

The airline is poised to cut capacity and costs with expected losses up to
44 million dollars this year and no break-even until 2010.

Struggling Italian flagship airline Alitalia is also poised for a huge
shake-up.

After years of losses Prime Minister Silvio Berlusconi has unveiled a
rescue plan that will see the carrier broken up.

Its ailing businesses will go into bankruptcy.

The remaining parts will help to create a brand new airline.

Paul Chapman, Reuters