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Discount airline NewLeaf hits a snag: Suspends bookings while CTA investigates

Just announced in January, NewLeaf says Canadian Transportation Agency is reviewing its licensing arrangement
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NewLeaf Travel president and CEO Jim Young announced the arrival of Canada's first 'ultra low-cost' airline Wednesday at Kelowna International Airport. Now the company has suspended bookings.

NewLeaf Travel Company has announced that it is temporarily postponing sales of airline tickets pending a Canadian Transportation Agency (CTA) review of licensing regulations for Indirect Air Service Providers.

NewLeaf will also refund all credit card transactions for reservations that were scheduled to begin on Feb. 12, 2016.

91裸聊视频淒uring this uncertain time, we didn91裸聊视频檛 want to put anyone with existing bookings at risk, and we wanted to give customers time to make other travel arrangements91裸聊视频 explained NewLeaf Chief Executive Officer Jim Young.91裸聊视频 91裸聊视频∟ewLeaf aims to resume taking reservations in the Spring.

91裸聊视频淐anadians 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,91裸聊视频 said Young. 91裸聊视频91裸聊视频淭he reason why we launched on January 6 is because it was confirmed that we were in full compliance of CTA licensing regulations. The CTA gave us an exemption from holding a licence directly while it reviews its legislation.91裸聊视频

Under a charter arrangement with Kelowna-based Flair Airlines Ltd., Flair held the CTA operating licence, while NewLeaf offered seat sales.

91裸聊视频淣ow, 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,91裸聊视频 said Young. 91裸聊视频淲e welcome a regulatory system in which businesses like ours can thrive in Canada as they do in other countries. As with any success that threatens to change the status quo, there are those that will resist that change and take any measures necessary to maintain the existing playing field, even if it is to the detriment of the vast majority and the benefit of the very few,91裸聊视频 said Young.

The 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 this Friday, Jan. 22.91裸聊视频 91裸聊视频ˋnyone wishing to express their opinion is encouraged to do so through the CTA91裸聊视频檚 consultation:91裸聊视频╤ttps://www.otc-cta.gc.ca/eng/consultation/consultation-requirement-hold-a-licence

NewLeaf Travel initially launched its website and started selling tickets to seven Canadian destinations on Jan. 6, 2016. The Canadian public91裸聊视频檚 response to NewLeaf91裸聊视频檚 launch of low cost airfares for those routes has been overwhelming, and reinforces the fact that Canada needs, and can support, an ultra low cost carrier that creates competition in air travel.

91裸聊视频淲e91裸聊视频檙e taking the high road in the way that is the most respecting of the consumer,91裸聊视频 says Young. 91裸聊视频淎s soon as the review is complete, we will make any required amendments if necessary, and resume sales as soon as possible.91裸聊视频91裸聊视频 91裸聊视频═hose who made reservations are guaranteed the opportunity to re-buy their seat for the price they paid for it when NewLeaf resumes sales.91裸聊视频91裸聊视频"

 

 

 





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