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Bye bye Tango

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Old May 7, 2003 | 9:39 pm
  #1  
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Bye bye Tango

The Globe and Mail on Wednesday unveiled a proposed Air Canada restructure plan (90% completed).

The plan includes shutting down Tango, but the food service in AC mainline Y-class will be charged.

I guess Air Canada can finally settle down with its LCC ops after all. I always think Tango and ZIP's service and routes is over-lapping, or in take-over battle.
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Old May 7, 2003 | 10:23 pm
  #2  
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Yet the same article mentions they are considering a low cost international carrier?! What are they smoking. If restructuring manages to lower labour costs at AC mainline, why do they need a LCC interntional brand?
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Old May 7, 2003 | 11:34 pm
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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.
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Old May 8, 2003 | 3:56 am
  #4  
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quote by Pitz:
All domestic lounges closed.

That would of course depend on what other airlines do. If the industry moves that way it will happen but if AC still wants a premium flyer then the lounges will stay but possibly be smaller and more exclusive like they used to be. Don't forget lounges are part of the loyalty program, in effect, as they are structured today.

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Old May 8, 2003 | 11:03 am
  #5  
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Since Zip has low labour costs, I doubt they will disappear. I don't think that AC mainline labour costs will come down to Zip's level, even with concessions.
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