NewLeaf Travel temporarily postpones sales, refunds reservations

WINNIPEG – NewLeaf Travel, the company which billed itself earlier this month as Canada’s newest discount airline has temporarily postponed service while The Canadian Transportation Agency completes a review of the company’s aviation licensing regulations.

A release from NewLeaf Travel Monday says as a result, the company will be temporarily postponing sales of airline tickets pending a CTA review of licensing regulations for indirect air service providers.

NewLeaf says it will also refund all credit card transactions for reservations that were scheduled to begin on February 12.

“During this uncertain time, we didn’t want to put anyone with existing bookings at risk, and we wanted to give customers time to make other travel arrangements,” explained NewLeaf Chief Executive Officer Jim Young in a release.

“Canadians have clearly spoken that they want this type of low-cost service. The overwhelming demand for tickets shows the need for affordable travel in Canada. Hundreds of thousands of people visited the NewLeaf website when ticket sales began. Thousands made bookings,” said Young.

The company launched January 6, with an announcement that it would soon fly from seven smaller Canadian airports, including Halifax, with one-way fares for as low as $89.

Other airports announced to begin service with NewLeaf include Hamilton, Regina, Saskatoon, the B-C cities of Abbotsford and Kelowna, and Winnipeg, where the carrier is based.

“The reason why we launched on January 6 is because it was confirmed that we were in full compliance of CTA licensing regulations, says Young. “The CTA gave us an exemption from holding a licence directly while it reviews its legislation.”

Monday’s release stated that under a charter arrangement with Kelowna-based Flair Airlines Ltd., Flair held the CTA operating licence, while NewLeaf offered seat sales.

“Now, there is ambiguity in the air as to whether we need to amend the relationship with our air service provider, or whether we need to have a licence ourselves. While Canada has many other Indirect Air Service Providers, NewLeaf is in a unique position as we are the first large-scale IASP,” said Young. “We welcome a regulatory system in which businesses like ours can thrive in Canada as they do in other countries.”

The company says CTA is reviewing whether persons who do not operate any aircraft, but market and sell air services to the public, should be required to hold Agency licences. The review applies to all persons operating in this manner and is not limited to NewLeaf’s proposed business venture with Flair Airlines Ltd. As part of its review, the Agency is consulting with, and seeking comments from, stakeholders before finalizing its approach.

The consultations end Friday, Jan. 22. NewLeaf aims to resume taking reservations in the spring.

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