The Wrap: Introducing ZIPAIR Tokyo – Japan Airlines’ new low cost, long haul carrier
12/03/2019 by WiT

In the news: Japan’s new low cost carrier ZIPAIR Tokyo, Agoda and Adyen partnership, Aeroméxico’s use of chatbot to trace baggage, Rod Cuthbert’s nomination to VELTRA board

Airlines: Introducing ZIPAIR Tokyo – Japan Airlines’ new low cost, long haul carrier

New carrier by Japan Airlines to launch summer 2020

Japan Airlines (JAL) has revealed the name of its new low cost long haul airline, ZIPAIR Tokyo, which is scheduled to launch next summer to coincide with Japan’s hosting of the Summer Olympic (Tokyo 2020) and Paralympic Games.

ZIPAIR plans to start operating with the initial fleet of two Boeing 787-8 Dreamliners based at Tokyo Narita Airport. Its first two destinations are Bangkok and Seoul, and is looking to start long haul flights in 2021.

In May last year JAL confirmed plans to launch a new low cost subsidiary focused on medium to long haul international routes in Asia, Europe and the Americas from its base in Narita. It established T.B.L. (which stands for ‘To Be Launched’), a preparatory company with a capital of 490 million yen, on July 31 2018 to do this.

With the registration (of the airline) now official T.B.L. will become ZIPAIR Tokyo Co. Ltd., as of March 8, 2019, said its representative director and president, Shingo Nishida, when announcing the details of the carrier on March 8 in Tokyo.

The LCC has applied for its air operator’s certificate from Japan’s Ministry of Land, Infrastructure and Transport, and will start recruiting staff in April.

On the new carrier’s rather unique name JAL explained: “ZIPAIR Tokyo is a coined word derived from the English word ZIP, which describes speed, such as how fast time can pass when traveling on a unique airline.

“In addition, the brand name incorporates the idea of travelling to destinations in various ZIP CODES, while aiming to create a calculated travel experience that encompasses the originality and ingenuity of the Japanese culture.

“And finally, the word Tokyo was added to the name, as the airline will be based in one of the most advanced cities in the world.”

ZIPAIR Tokyo is not JAL’s first LCC venture as it has set up the Tokyo-based low fare airline Jetstar Japan in partnership with Australia’s Qantas, each holding a 33.3% stake. The other shareholders of the LCC, which started operations in July 2012, are Mitsubishi Corporation (16.7%) and Century Tokyo Leasing Corporation (16.7%).

The setting up of ZIPAIR is also part of JAL’s plans to promote inbound tourism to Japan, which is expected to see a spike in arrivals with the hosting of the Olympics. In 2017, 28.69 million international travellers visited Japan, rising to  31.19 million last year. The Japanese government hopes to receive 40 million foreign tourists in 2020, and aims to increase the number to 60 million visitors by 2030.

Agoda partners Adyen to offer more payments options

More payment options for Agoda’s customer in new partnership
(Image credit: Adyen)

Online travel booking platform Agoda has partnered with Adyen to give customers more payment options and processes globally.

The partnership improves flexibility in payment methods and increase payment acceptance rates, said the payments platform in a statement. Using its solution Agoda is able to offer customers alternative payment methods such as ATM bank transfers or paying offline at convenience stores.”

In addition, Adyen’s Real Time Account Updater ensures expired or lost card details are updated, reducing involuntary churn increasing payment authorisation rates.  

Detailed global reporting capabilities also allows the Booking Holdings subsidiary to better analyse transaction performance with the payment platform’s global reporting capabilities. 

Darren Makarem, Agoda vice president, commercial finance, said the partnership was in line with its goal to build “a frictionless booking and payment process for travellers, driven by technology innovation.”

Warren Hayashi, president of Adyen, Asia-Pacific, added its platform was “built for growth, simplifying and accelerating payments globally for fast-moving companies like Agoda.”

Chatbot: Aeroméxico uses AI to help passengers track baggage

Chatbot is now helping Aeroméxico’s passengers to locate baggage.
(Image credit: Saklakova/Getty Images)

Mexico’s flag carrier Aeroméxico’s artificial intelligence (AI) chatbot, Aerobot, is a hit with its customers who use it on WhatsApp or Facebook Messenger for tasks such as buying tickets, checking flight status and finding destination-based recommendations.

Aeroméxico said Aerobot currently handles more than 90% of the customer queries that come through those platforms. The carrier now makes the chatbot even more useful with one more function – to respond to queries from passengers about the location of their baggage.

This is made possible by the Mexican carrier integrating SITA WorldTracer baggage tracing service with Aerobot, making it the “first in the world” to harness AI to improve its baggage services.

The passengers just enter the baggage information and they can check the status of their luggage in real time through the chatbot without any intervention from airline staff.

“At Aeroméxico we strive to serve our customers in the way that is most comfortable and practical for them,” said Edouard Piquet, senior vice president customer experience at Aeroméxico.

“Integrating SITA’s service will help us increase our efforts and will lead us to the right path in order to respond efficiently to passengers and get them reunited with their bags as quickly as possible.”

Added Uriel Torres, SITA director general for Mexico and Central America: “Using our WorldTracer API the service integrates quickly and easily providing the chatbot with the latest data available. We expect that this will be the first of many international airlines using our baggage service technology with artificial intelligence for a better passenger experience.”

According to the SITA 2019 Passenger IT Insights, passenger worldwide are happier when technology at airport improve their journey.

The report also shows that passengers are demanding more baggage services. A majority disclosed they would use mobile notifications to get information about their baggage on arrival, and their mobiles to track their bags or to report mishandled baggage.

SITA said more than 500 airlines and ground handlers at over 2,800 airports worldwide use SITA WorldTracer.

People: Rod Cuthbert joins board of Tokyo-based VELTRA


Rod Cuthbert nominated to VELTRA board

VELTRA Corporation has announced the nomination of Rod Cuthbert to its board as a non- executive director. VELTRA is Japan’s leading online retailer of tours and activities and was listed on the Tokyo Stock Exchange on December 25, 2018. .

The company said Cuthbert’s nomination would be made official at a shareholders meeting on March 28 in Tokyo.

Cuthbert founded Viator in Sydney in 1995, and was its former CEO and chairman. The company was acquired by TripAdvisor in 2014. He was chairman and CEO of Melbourne-based online travel company Rome2rio from 2012 to 2018.

VELTRA CEO Wataru Futagi said the company has a long association and friendship with Cuthbert. “We expect his experience in pioneering the tours and activities marketplace and developing brand presence in international markets, will be of great value to us as we expand our own business outside Japan.”

Cuthbert said that VELTRA’s 2016 acquisition of leading European OTA City Discovery was a first step towards its global expansion.

“The whole industry is growing quickly, and there’s no sign of its a slowdown in consumer demand for quality experiences. The VELTRA team has grown their Japanese business quickly and dominate their domestic market with a successful IPO, and with the City Discovery purchase behind them they’re well placed to make their mark in global markets.”

Featured image credit (Narita International Airport): gyro/Getty Images

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