From Canada Newswire:

Attention Business Editors:

New Low Fare, High Value Airline to Zip Into Western Canada This Summer

ZIP responds to changing airline marketplace - growing demand for high
value, low fares

CALGARY, Alberta, April 19 /CNW/ - Air travellers will soon have a new
choice for high value, low fare air travel, with the announcement today that
ZIP (ZIP Air Inc.) will launch service in Western Canada this summer. A wholly
owned subsidiary of Air Canada, headquartered in Calgary, ZIP will offer low
fares, a convenient schedule and friendly, professional service. This will be
teamed with Air Canada's outstanding maintenance, safety standards and the
Aeroplan Reward Program.
"The announcement of ZIP speaks to a growing number of consumers who are
asking for more options in low fare, reliable air service," said Steve Smith,
President and Chief Executive Officer of ZIP. "ZIP responds directly to
fundamental changes in the airline industry, especially on short haul routes
where fewer consumers are looking for Executive Class and meals, but all are
looking for low fares and friendly, professional service."

ZIP'S NETWORK AND AIRCRAFT
ZIP will initiate operations between Vancouver and Calgary, replacing
existing Air Canada network flights without changing the number of
frequencies. Within its first year of operations, ZIP will grow to serve
additional markets across Canada and into the United States.
ZIP's start-up fleet will consist of six Boeing 737-200 aircraft, and
will eventually grow to twenty 737-200s, all transferred from the existing Air
Canada mainline fleet. ZIP will operate primarily short haul routes with
connections to and from Air Canada's worldwide network.

ZIP STYLE
ZIP's signature look - a full, vibrant, four-colour palette with a
prominent white logo - was unveiled today, including a model B-737 in fuchsia
livery and aircraft images in ZIP's colours: fuchsia, blue, green and orange.
"We have specifically chosen a very distinctive look for ZIP that reflects the
unique character we will bring into the marketplace, one of ease, confidence
and convenience coupled with value and low fares," added Steve.

BUYING AND FLYING WITH ZIP
The airline will announce schedules, fares and the commencement date for
ticket sales at a later date.
Customers will be able to book travel on ZIP online at www.4321zip.com,
through a toll-free call centre or through travel agents. ZIP will offer
electronic ticketing and check in at Air Canada's Express Check-In kiosks.
Onboard, customers will enjoy generous legroom, ample storage space and a
complimentary light snack and beverage service. ZIP will offer convenient
connections to the Air Canada worldwide network. All ZIP flights will qualify
for Aeroplan mileage accumulation and redemption for reward travel.

THE ZIP TEAM AND AIR CANADA
ZIP's operating certificate, licenses, management team and corporate
identity will be independent of Air Canada. ZIP staff will manage the
airline's operations from its Calgary headquarters and network locations. ZIP
will operate with a dedicated team of customer contact people, including
flight attendants, reservation agents and, in certain cities, passenger
agents.
ZIP will contract with Air Canada and Air Canada Jazz, for the provision
of certain operational services and resources, including pilots for ZIP
flights and the maintenance of the ZIP fleet, at commercial market rates.

ZIP'S CALGARY HEADQUARTERS
With its headquarters in Calgary, ZIP is well positioned to take
advantage of Calgary's strengths: its strategic location as a major North
American transportation and logistics hub; the city's entrepreneurial approach
to business, and the Calgary International Airport's ongoing customer service
upgrades and expansion. ZIP's headquarters offices will be located within
existing Air Canada office and hangar space near the airport.

ZIP AT A GLANCE
---------------

ZIP Air Inc. (ZIP) is a wholly owned subsidiary of Air Canada, which will
launch this summer.

ZIP WILL OFFER
--------------
- Competitive, low fares
- Convenient schedules
- Comfortable, reliable aircraft
- Friendly, professional service
- Electronic ticketing
- Ample overhead storage space
- Comfortable seat pitch
- Complimentary on-board beverage and light snack service
- Aeroplan Reward Program
- Convenient connections to Air Canada's worldwide network
- Automated check-in kiosks
- A wide range of options for bookings including:
- Over the Internet
- With the ZIP call centre, or
- Through a travel agency

PLUS:
-----
- ZIP will also be built on Air Canada's extensive experience in
maintenance and flight operations. ZIP will subcontract the
maintenance of its fleet to Air Canada, at commercial market rates,
and will use Air Canada pilots.
- ZIP will operate independently with its own:
- Management team
- Headquarters in Calgary
- Corporate brand and identity
- Operating certificate and licenses

ZIP PEOPLE
----------
Initially 250 people will be part of the ZIP team, based in Calgary and
in Vancouver, with plans to eventually staff up to 1000 employees.
Oh, and...ZIP's hiring. Check out the Web site for details.

www.4321ZIP.com
---------------
That's it - please visit often.

ZIP PLACES
----------
ZIP will initiate operations between Vancouver and Calgary replacing
existing Air Canada network flights without changing the number of
frequencies. Within its first year of operations, ZIP will grow to serve
additional markets across Canada and into the United States.
ZIP will operate primarily short haul routes with connections to and from
the Air Canada worldwide network.

ZIP AIRCRAFT
------------
ZIP will commence operations with six Boeing 737-200 aircraft in a 117
seat, all-Hospitality configuration, with an eventual fleet of 20 aircraft.
The entire ZIP fleet will be transferred from the existing Air Canada mainline
fleet.

MORE ABOUT ZIP
--------------
Future announcements will include details on ZIP's plans for hiring,
fares, flight schedules, first date of ticket sales and more.

Stay tuned!

ZIP QUESTIONS?
--------------
Patricia Misutka
ZIP Corporate Communications
Phone: (604) 276-4959
Cell: (604) 788-3481
Email: [email protected]

AND SOME MORE ABOUT ZIP

WHY ZIP?
--------
Canadians have told Air Canada that they want the airline to continue
serving their communities, but the airline's mainline operations in certain
short haul markets may no longer be financially sustainable. Low fare air
service is a market segment that is growing and is ideally suited to a low
fare carrier, which by definition has lower costs and is better able to
respond to growing consumer demands.

ZIP will be able to take costs out by:
- Offering complimentary light snack and beverage service only
- Ensuring maximum use of electronic services from online booking to
self-serve electronic check-in
- Configuring all planes in all Hospitality seating with enhanced seat
pitch
- Lowering labour costs
- Benefitting from synergies and efficiencies that result from operating
only one type of aircraft, the Boeing 737-200

The launch of ZIP is Air Canada's answer to new market realities and a
critical component of its strategy to dramatically reduce its costs. It is
also consistent with the primary goal of its business plan to return to
profitability, to the benefit of customers, employees and shareholders.

WHY NOW?
--------
In Canada, consumers are asking not just for more low fare service, but
for more low fare service from Air Canada. In an Ipsos Reid survey conducted
between November 30 and December 6, 2001, 61 per cent of Canadians indicated
that not enough low-fare carriers operate in the domestic market and 82 per
cent of Canadians indicated they would fly a low-fare, no-frills airline
affiliated with Air Canada.
The time is right for ZIP, a new low fare airline that will provide an
attractive, affordable service alternative, while offering connections to Air
Canada's worldwide network.

ZIP'S WINGS
-----------
ZIP will fly some of the newest B737-200 aircraft in service. The B-737-
200 is the most suitable aircraft for the routes ZIP will fly. The Boeing 737-
200 fleet has been maintained with the highest maintenance standards and will
continue to be maintained by Air Canada.
The Boeing 737 series is the best-selling jetliner of all time. 737s have
carried the equivalent of the world's population - about 6.1 billion
passengers.

ZIP STYLE
---------
ZIP has a distinct "style". The company has designed its image to convey
the type of company the airline plans to be. ZIP is:
- friendly, confident and professional
- memorable, like its short, catchy name
- confident and bright, like its bold four-colour palette

OK...WHAT'S WITH THE BEE?
-------------------------
People will notice. ZIP has a bee on all of its planes. A bee was chosen
as a flying companion because of its outstanding characteristics. Bees are:

- industrious
- great producers
- harmonious team players
- resourceful
- intuitive

It's a great symbol for a hard-working airline with a goal of making
flying easy.

GETTING THE ZIP TEAM IN PLACE
-----------------------------
The airline is now recruiting members for the ZIP team. Interested
applicants can visit the ZIP Web site at www.4321zip.com starting April 19,
2002.

NEED MORE ZIP?
--------------
For more information, to arrange interviews or request visuals, please
contact:

Patricia Misutka
ZIP Corporate Communications
Phone: (604) 276-4959
Cell: (604) 788-3481
[email protected]

ATTENTION PHOTO EDITORS: A selection of high resolution, downloadable
ZIP aircraft images are available at www.4321zip.com .




-30-

For further information: Patricia Misutka, ZIP Corporate Communications,
(604) 276-4959, Cell: (604) 788-3481, [email protected]
ZIP has 1 releases in this database.

One of several liveries -- looks like they took a page from Braniff International.

So is its full name "Zip-Fly" .....or should that be "Button-Fly"  

Is it just me or is flying Air Canada these days like living a GAP ad! Zip, Jazz, Tango! Sheesh!

 

The pink is simply GROSS.

Wow tango and jazz are ok, but this livery is NASTY.

So is the green one! Yikes!

Sounds similar to Buzz in the UK which I believe was a failure for BA. Probably similar things will happen here, yet the one thing I like about Zip is that it allows connection to Jazz and AC Mainline, unlike Tango.

Buzz is owned by KLMuk, not BA. BA started and then sold Go.

Cheers

 

I don't get it? Why would AC introduce so many new brands? Why not expand Tango?

Also, why isn't AC looking at other (discount failures) like British Airways GO, United's Shuttle, Metro Jet, on and on and on. If British Airways could go back in time, they never would have created GO.

I can see 2 years from now, AC is cash strapped, so they decide to sell Zip for some quick cash and now they have another discount competitor to deal with.

In regards to AC Zip's new liveries:

Ah, er--no thanks.  

Beautiful they're not.

I like the blue liveries. So, with 20 737s for Zip, and 8 for Tango, I guess AC kept most of the 737-200s. How many 732s have been painted in Tango colours? I only have seen C-GCPS and C-GFCP.

Why not Expand Tango? Tango still uses the Unionized AC employees who have all the benefits that mainline AC employees have.

Zip will be run seperate, possibly no unions and different benefits meaning lower costs. This will allow Air Canada to show the competition bureau that this airline can keep prices as low or lower then Westjet and other Low Cost carriers without losing money. This could be considered predatory pricing if the mainline did it, so this way they have found a way around it.

Thanks Britair, I was uncertain about Euro LCC's, but I knew BA had a bad one! Also, if you check out their site, they have some pretty good management positions up for grabs.

I can't wait till Neil sees this........oh no!!!

Grant

AC is going nuts if you ask me...... 

It looks like Eastwind's bee has come out of hiding, and it migrated north for the summer!

I can't wait to see what the AC unions think of this airline, especially if it is going to be a non-union airline.

BTW: Anyone catch that blurb that the planes will be flown by AC pilots? Does this mean AC pilot wages?

BTW2: How long before WJ retaliates by offering YHM-YUL service?

How will AIr Canada be able to fund the money for all this. Man its gotta cost a bundle for the paintjobs..

I am disgusted, get this travesty away from Calgary and put a restraining order on this ZiPpo to stay at least 1000km away from WestJet!!

wow AC must be in love with those weird names...may be someday there's a 732 soon be named "zipper"

What is AC going to do with all the mainline aircraft doing YYC-YVR? are they going to be put on new routes? I am not keen on the Pink though. Its gonna be 1 expensive paint job. Does anyone have info on that?

Shawn

More from Canada Newswire:

Air Canada wants to zap its employees with ZIP

OTTAWA, April 19 /CNW/ - The hard work of dedicated employees built Air Canada and now the airline is telling them they're no longer needed for the new discount carrier, says Pamela Sachs, President of the Air Canada Component of CUPE.

"We want Air Canada to be successful and we will continue to do all we can to make that happen but we are concerned with the direction this airline is taking with ZIP," said Ms. Sachs, whose Union represents 8,500 cabin crewmembers.

Air Canada's plan to eventually use 20 737-200 aircraft at ZIP will be vigorously resisted if our members are not employed to crew the flights, said Ms. Sachs.

"The company will be taking those planes from its mainline fleet and we will insist they take the crew from the mainline as well," she said. "Our members built Air Canada. We're telling Air Canada that we are the employees to make this venture a success. Our members have the right to be involved and Air Canada has the obligation to include them."

Ms. Sachs said Air Canada's contention that its Western-based low fare carrier is wholly owned, independently operated subsidiary is simply not true.
ZIP is an Air Canada owned, Air Canada operated carrier and they must employ CUPE members.

"This is a common employer issue and the Air Canada must realize that," she said. "Air Canada gives ZIP by zapping its employees. They are hurting the very people who have worked so hard for them for so long."

Ms. Sachs said the Union has instructed its legal counsel to take all measures necessary to protect its work and its members up to, and including, initiating common employer proceedings.

If I had the power, I would send AC, their discount carriers and their anti-competitive views straight to HELL  . They are trying to exterminate evey airline in Canada!

Even though I am an AC shareholder, I hate the way they create all thse news companies, making people think it's a new airline and not AC, when really, it is.

And that name and livery makes it that much worse!

Yow, those are some seriously fugly planes. And while I can understand wanting the idea of speed associated with "zip," I think the connotation of "zip" meaning "zero" is not quite as favorable.

It does look like part of the plan is to use Zip to get around high-cost labor contracts, but I imagine there will be quite a price to pay in future labor negotiations. Longer-term, I also believe Zip will find it difficult to compete with WestJet while using older, less fuel-efficient, more maintenance-intensive 737-200's, while WJ continues to add 737-700's.

Bo as much as you hate them now, I know you'll be out there snapping at them jazzy looking planes!! Sorry, those 'zippy' lookings planes, it seems the term 'jazzy' is already taken.  

How true C172Akula.

No doubt we'll be out there watching "that seventies show" style colour scheme and snapping away merrily with our cams!

Got to admit, it will make for an interesting day of spotting.

"BEE" that as it may, that pink initiates my gag reflex.

Yet another move by Air Canada to pound Westjet. What a travesty, it's plane ugly. There are no other scheduled carriers for Air Canada to go after, it's all aimed at Westjet. The Calgary operating base is only salt in Westjets wounds. I hope Westjet crushes Zip.

Fly Westjet

Why not call it Air Canada Jellybean? It will be very interesting to see Air Canada's position in a few years from now. Will they profit from all this? Are they creating too many seperate brands?

I'm from the US so I may be a little off base here, so don't get too mad at me guys.

It seems that whenever another airline in Canada is sucessful, (Westjet, C3) Air Canada has to compete with it until it, no pun intended, drives the competition into the ground.

I don't know, I feel that AC is a little overpowering and needs to cooloff for a while.
 

Tango, Jazz and now Zip? Do the AC marketing people have their heads up their asses? Whats next? Foxtrot, Rock and Zoom?

I guess after BA's Go, AC had to prove to the mother country that they wew as able to come up with bad names as well.

By the way, I like the orange one best. All they have to do is put CP Air on it to make it look really good.

By the way, looks like their graphics department was low cost too. Those are some pretty pathetic "artist's renditions".

Did their shareware version of Photoshop runout?

Hehehe...

Maybe they just used Microsoft paint.. Speaking of paint, seems they got enough crazy colours at a garage sale somewhere to respray all those planes .... Didn't know pastel/neon was back. Wonder who is AC's colour consultant - Mimi from the Drew Carey show?  



LOL ... Jellybean... I like that one..

Sonic99

So what are the chances Zip will be around in 5 years.
100% or 0%, I think zero.

If they paint the planes and the engines those bad colours what happens if they have to do an engine swap, or have too replace an engine.

Green plane with a pink engine is going to look really bad.

Sorry Pamela Sachs and the rest of you CUPE freaks, it doesn't have to be crewed by CUPE members. This is a low cost venture and in order to remain competitive, unless your members are willing to work for pay far below what you're getting at mainline AC then forget it!! I am a union member(not CUPE thank god) but ZIP doesn't necessarily have to have a unionized cabin crew.

BNE: The chance of this airline being around in five years? Zip.

I think Uncle Milty and his marketing people are smoking some bad banana weed...
Cant wait to see what the inside of the planes will look like!!!

A rather simpleton question this may be, but I would just like to know how Ottawa can sit by quietly
(what the hell else is new) and watch Milton & Co. blatantly increase their monopoly and hold over the Canadian travelling public. Where the hell is Collenette, who promised a fair and competitive air market to
Canadians? "Zip", "Tango", "Jazz", whatever, it all adds up to one name, Air Canada. And I quite agree with those here who outlined the fate of the BA regional airlines, as well as other carriers, and feel AC will face a similar fate. And is it just me, or is Air Canada rapidly becoming one huge discount carrier? ("attention, K-Mart
Flyers!!"). Never mind the regional names, it's still AC.

How nice for our supposedly national flag carrier to present itself as nothing more than "Air Walmart". How long will it be before more and more AC mainline routes are serviced by these discount branches? All I can say is that I hope the new T-New at YYZ has plenty of food outlets, because from the looks of it, the time is fast approaching, indeed, perhaps has already arrived, where Canadian travellers will face "ZIP" service in terms of meals and drinks on-board, and whether you agree or disagree in terms of levels of on-board services, it still adds up to two words: "Customer Service".

What the hell have we become, mere cattle to be transported in a "Dantes Inferno" econo-style from one barn to the next? Are we really willing to pay CAD$1.00 for a bloody glass of water?? ("Tango"). I suppose Milton & Co. have forgotten the old saying, "getting there is half the fun". Now, I suppose, "Getting there is hell" is more like it. Why do we put up with this?
Why in the hell do we moan and sigh as we try to squeeze ourselves into too small economy class seats,
our legs one step away from Thrombosis?

Mind you, I believe (hoping, too) that the loyalty displayed by Westerners towards Westjet will continue.
Granted, consumers WILL seek the most inexpensive fare, and frequency will play a large factor, but I'm keeping my fingers crossed for Clive & Co. The Canadian travelling public MUST actively SUPPORT
Westjet, there is no two ways about it. And while you're at it, fly TS and SSV when you have the chance to do so. It is only we who will actively contribute to a competitive market. Should you find yourself if bitching about the AC monopoly, while holding an Air Canada boarding pass in your hand, then don't whine. If you HAVE a choice, in terms of routes and frequency, then bloody well exercise your perrogative to support a healthy Canadian air market, and fly an AC competitor.

And it would appear "here we go again" with the notion that Milton should realize he is operating in a nation with only 31,000,000 people, a moderate percentage of which don't fly. (unless of course, he's hoping to expand these embarrasingly cheap and crass regional carriers to include U.S trans-border destinations, which wouldn't surprise me in the least). In short, it's a small audience, Robbie, and the theatre is too big, especially if WJ can hold its own.

And what about Air Transat and Skyservice? How much longer before Ottawa sits by, eating Poutine,voting themselves yet another increase for a job not done, and watches Milton successfully target these two charter carriers? And where will we be? Sitting at Starbucks, the great "Canadian" coffee company, drinking a Latte Grande, "tch tching" while reading of this in The National Post. Ah, yes, "The Great Canadian Revolution". Starts at 9:00 a.m., finishes by 9:15 a.m., so we can all get to the GAP, Sears, and have that 4th Latte of the day.

I have said this before, and I shall repeat it again. In my opinion, the level and quality of customer service, both on the ground and in the air, is a DIRECT and blatant manifestation of the overall opinion a carrier has for its client base. Air Canada is repeatedly sending out the message loud and clear of how it feels about the Canadian traveler. And it aint much. It would seem the Maple Leaf is slowly being replaced by ugly and "GAP-like" (thanks to the contributor who pointed this out) aircraft exteriors. Hmmmm, so much for the proud "Flag" carrier. Milton never did, and never will, give a damn about Canadiana, about Canadian pride. After all, the man is American, so we shouldn't be too surprised by that. And I mean absolutely no offence to our American neighbours here. We opened the door, and let him in folks. What, there was NO-ONE, not one qualified Canadian amongst us who could have effectively taken the reigns of AC, and steered it towards being a world class carrier? As usual, we Canadian sheep averted our gaze elsewhere. Think I'm being over the top? Think again. Hard.

Milton is not "one of us", never will be, never could be. What about the rest of us? And believe me, I include myself here. What's our excuse? We pride ourselves on being patriotic, of being proud of this nation, yet, time and time and time again, we Canadians merely sit by, mouths shut, a multicultural herd of coast to coast grazing cattle, and do nothing, nothing about what is manifesting before our eyes. A vast number of Canadians voted the fossil Chretien in again, doesn't that speak volumes about what our mandate is? Or did we even ever have one to begin with?

Oh, but being assertive and pro-active, hearing your voice heard is just too, too "Amercian" for us. Oh no, much too much for we Canucks. Why, my God, if we speak up, someone may hear us! And that would prove to be rather embarrassing, no?

Pass the Poutine. And sprinkle the remnants of Westjet, Air Transat, and Skyservice on top of it.

Well said CanadianBoy, I fully agree with you. How can I be proud of a flag carrier when it doesn't stand for anything I do. I'm ashamed of Air Canada, and our government for that matter. The government has always said we will not let this fly, well I haven't seen anything yet. Tango was dubbed a fighting brand, the government took so long to act that Canada 3000 hit the dust, will the government wait until Zip flies then say scrap it now or else? Air Canada can just blame the loss of Zip's jobs on the government, look who wins.

Shouldn't we be proud of our national flag carrier? Well I sure as hell aren't!

Fly Westjet!