The same report (or the CBC report) also says B747 and B737's will be completely phased out.

Since Zip is an all B737 operation...does this mean the demise of Zip as well?

Seriously...what is the point of Zip anyways? At first, it served to attempt to demonstrate the feasibility of operating a low cost airline with a different yield management philosophy within the structure of the traditional mainline carrier.

However, with the mainline carrier now rapidly moving to a service model similar to that already in place at Zip, does Zip, like Tango, not become redundant? Would Zip do little in a revitalized AC other than to dilute the mainline AC brand? Would it not be better for Air Canada to present a single continuous brand of service, rather than forcing consumers to figure out the hodge-podge of Zip, Tango, Air Canada, etc., etc.?

Personally my prediction for the next 3 years: AC reduces itself to an all A319/A320/A321/A330/A340/B767-300 fleet, Zip/Tango dissappear, airplanes retain similar configurations, with many tiers of discounted J and Y fares available on a first-come, first-served basis. Full meals only become available on overseas flights. A generous 'pay as you go' snack/ice cream cart becomes available on domestic flights (complimentary in J). Water and pop remains complimentary in Y, alcohol remains complimentary in J. All domestic lounges closed.

And of course, borrowing from Zip/Tango, the network will concentrate more on point to point service, with a greater proportion of flights ensuring crews return to their home base after a day of work.