Zip was a Canadian discount airline using B-737 from ex Canadian Airlines International fleet, launched by Air Canada as a no-frills subsidiary in September 2002. It operated a fleet of 12 Boeing 737 aircraft, each painted in a bright, neon colour (blue, fuchsia, green and orange) with a single class of service.
The subsidiary was headed by former WestJet CEO, Steve Smith. Zip was known for branding its advertising with 3 character words. Among them, "yuk" which was printed on the air sickness bags, "bag" was printed on the personal baggage tags, and "yum" was printed on the napkins distributed with beverages onboard. Large print advertisements were erected in many cities, which simply said "fly" and the company's website address below.
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As a direct competition to Canada's leading low-cost carrier WestJet, Zip flew mostly between the western cities of Abbotsford, Calgary, Edmonton, Vancouver, Saskatoon, Regina and Winnipeg. Also, Zip flew to Mexico City.
Zip was closed down in September 2004 and a few of its employees were folded back into Air Canada.