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Fledgling Canadian LCC NewLeaf grounded over permit issue
Sunday, 19 Jan, 2016
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New Canadian aviation startup NewLeaf has been forced to suspend ticket sales and put its proposed February launch date on hold.
An ‘ambiguity’ over licensing is behind the postponement of service, which is being looked at by the Canadian Transportation Agency (CTA).
Winnipeg-based NewLeaf Travel sells tickets and markets air services and has a charter arrangement with Kelowna-based Flair Airlines to operate flights to and from Halifax, Hamilton, Regina and Kelowna.
NewLeaf said it believed it complied with current rules due to its arrangement with charter carrier Flair Airlines which holds an operating licence, but this is now being looked at by the regulator.
Ticket sales have been suspended and customers with confirmed bookings will be refunded.
The airline was due to launch 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," NewLeaf CEO Jim Young said.
"The CTA gave us an exemption from holding a licence directly while it reviews its legislation. Now, there is ambiguity as to whether we need to amend the relationship with our air service provider, or whether we need to have a licence ourselves," Young added.
A CTA statement said: "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.
"As soon as the review is complete, we will make any required amendments if necessary, and resume sales as soon as possible," said Young, hinting that it may be able to restart operations in the spring.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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