Discount airline NewLeaf postpones ticket sales pending licensing review

Canada's newest low-cost airline has been temporarily grounded, pending a government review of aviation licensing regulations.

In a statement issued Monday, NewLeaf Travel said the company is temporarily postponing ticket sales, while the Canadian Transporation Agency reviews licensing for Indirect Air Services Providers.

See Full Article

The CTA defines this type of operation as one party having commercial control and the ability to make decisions on routes, scheduling, pricing and aircraft, while charter air carriers operate flights on their behalf.

NewLeaf has an arrangement with Kelowna-based Flair Airlines, in which NewLeaf controls the seat sales, while Flair holds the CTA operating licence.

"The reason why we launched on January 6 is because it was confirmed that we were in full compliance of CTA licensing regulations,” Jim Young, CEO of NewLeaf, said in the statement.

"The CTA gave us an exemption from holding a licence directly while it reviews its legislation."

The CTA says it is considering changes to its methodology in situations where the operator of an air service " has commercial control over an air service, but does not operate aircraft."

NewLeaf says it will refund all credit card transactions for reservation that were scheduled to begin on Feb. 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," Young said.

NewLeaf planned to run non-stop trips from airports in Nova Scotia, Ontario, B.C., Saskatchewan and Manitoba.

It promised that flights would run customers between $89 and $149.

The company says it hopes to resume bookings in the spring.

"As soon as the review is complete, we will make any required amendments if necessary, and resume sales as soon as possible," said Young.

The CTA's public consultations are scheduled to wrap up on Friday.

Young says there's "ambiguity" in how NewLeaf should proceed, and whether they need to "amend the relationship" with air service providers, or get a licence themselves.

"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."



Advertisements

Latest Economic News

  • World shares mostly down ahead of key central banker meeting

    Economic CTV News
    HONG KONG -- World stocks were mostly lower Monday as U.S. and South Korean joint military drills kept markets on edge and investors awaited a key meeting of central bankers later this week. KEEPING SCORE: European shares fell in early trading. Source
  • Back to school: How mature students can fund continuing education

    Economic CTV News
    VANCOUVER -- When Kear Porttris decided to pursue a university degree in 2010, he had to contend with responsibilities that don't cross the minds of many freshman straight out of high school, including paying his mortgage and feeding his daughter. Source
  • First round of NAFTA talks wrap in Washington

    Economic CBC News
    Canada, the United States and Mexico wrapped up their first round of talks Sunday to revamp the NAFTA trade pact, vowing to keep up a blistering pace of negotiations that some involved in the process said may be too fast to bridge deep differences. Source
  • Apple under pressure to dazzle as market slows

    Economic CTV News
    As Apple and Samsung gear up to launch new flagship smartphones, the market leaders are seeking a wow factor that can help them fend off challenges from rising Chinese-based manufacturers. Apple is under particular pressure to dazzle as the culture-changing California iPhone maker looks for a way to maintain its image as an innovation leader in a global market showing signs of slowing. Source
  • From panhandlers to street musicians, not everyone is ready for cashless society

    Economic CTV News
    MONTREAL -- The sound of Anthony Lovison's singing echoes through the corridors of the Montreal subway, reaching commuters' ears long before they see the young brown-haired man and his guitar. Barely a minute into "Heaven's Door," a man walks up with a smile and throws 50 cents into Lovison's open guitar case -- the first customer of the day. Source
  • Eclipse eye safety and airline phone scams: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Here's the consumer news you need to know from CBC's Marketplace. Get this in your inbox every Friday. Sign up here. Protect your eyes during the eclipse Planning on watching the eclipse Monday? Regular sunglasses won't be enough to protect your eyes. Source
  • Canadian re-commerce company LXRandCo taking luxury vintage shopping into the future

    Economic CBC News
    You've probably heard of e-commerce. But what about re-commerce? It's the business of buying and selling used items. There's a Canadian company, LXRandCo, that's carving out a niche for itself in this category. It deals in the vintage luxury market, which is growing 14 per cent every year, according to the experts at Canaccord Genuity, a financial services company. Source
  • Canada open to completing NAFTA talks in short order

    Economic CBC News
    Canadian negotiators are open to working on a timeline proposed by the U.S. to complete NAFTA renegotiations before the end of the year, CBC News has learned. A government source, speaking on background, tells CBC News that Canada is willing to work quickly, but will not agree to a bad deal for the sake of meeting a deadline. Source
  • U.S. wants NAFTA talks to wrap up before year's end, but is it possible?

    Economic CBC News
    Canadian negotiators are open to working on a timeline proposed by the U.S. to complete NAFTA renegotiations before the end of the year, CBC News has learned. A government source, speaking on background, tells CBC News that Canada is willing to work quickly, but will not agree to a bad deal for the sake of meeting a deadline. Source
  • B.C. premier and jobs minister sued by fired LNG advocate claiming $5M

    Economic CTV News
    VANCOUVER -- British Columbia's fired liquefied natural gas advocate is suing Premier John Horgan, the province's jobs minister and a New Democrat MP in a lawsuit claiming $5 million in damages. Gordon Wilson alleges in a statement of claim filed in B.C. Source