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MARCH 2019

Week 9

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'Zip' is Asia's newest LCC

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March 1st 2019

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Japan Airlines will give two 787-8s to new long-haul LCC, likely to be named “Zip”. Read More »

As JAL plans its new medium to long haul LCC, the central question is how low-cost it will be.

Its future is coming into view. Brand elements are not due to be disclosed until late March or April, but it was found JAL’s branding agency registered internet domains Zip Air and Zip Air Tokyo, leading media to confirm that is the target name. JAL appears aware and unconcerned about the name Zip: it was also the brand for Air Canada’s LCC. Zip exited the market in 2004.

JAL this week disclosed the airline, under the working name “To Be Launched”, will receive two 787-8s from JAL’s existing fleet. That was one option alongside giving the airline all-new aircraft, which would operate more efficiently but add acquisition costs and impact group strategy: the old aircraft would have needed an upgrade to remain on JAL mainline.

The most interesting development to some was TBL Director Hiroyuki Uehara, as reported by Twitter user @sixtybolts, saying: “If you focus on the cost side, you're going to fail. We are going to do a totally different model.”

Innovation is welcome, but TBL would be unwise to totally zip up savings potential.

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