Hugh Boyle (left) and his brother John founded Zoom in 2002
The Scottish entrepreneur who founded the collapsed airline Zoom said "anxious" creditors had caused the carrier to fail.
Hugh Boyle, who set up Zoom with his brother John in 2002, said it was a "tragic day" for passengers and staff.
Mr Boyle said the airline had "left no stone unturned" to secure a refinancing package but the actions of creditors meant it could not continue flying.
He said a plane was seized which caused a "domino effect" leading to collapse.
Zoom was founded by Hugh Boyle, who relocated to Canada after making his fortune selling Direct Holidays in 1998.
The airline set up in 2002 as a low-fare transatlantic airline based in Canada's capital city, Ottawa.
It moved into the British market, initially specializing in cheap flights to Canada.
In June last year, the carrier began flights from London Gatwick to New York for as little as £130. In recent weeks, free flights for children were offered on some flights.
Speaking to BBC Scotland, Hugh Boyle said: "Obviously it is a very difficult time for airlines as I think everybody will know.
"Zoom was in the process of having a restructuring and a financial investment into the company.
"This, unfortunately, took a bit longer than anticipated.
"Some of our creditors got very anxious and we had a plane seized, which resulted in a domino effect of having to suspend our services."
Separately in a statement, Mr Boyle added: "The collapse of Zoom is a result of matters beyond our control.
"Only last year Zoom Airlines made profit, but that turned into a loss in the last year due to the unprecedented increase in the price of aviation fuel and the economic climate.
"The price of oil resulted in our fuel bill jumping by nearly $50m in one year and we could not recover that from passengers who had already booked their flights."