NewLeaf Travel Company, the new Canadian airline that has promised discounted tickets, has announced that they will be suspending services, and will not begin flying in February as originally planned.
The problem that has delayed the commencement of services is due to the Canadian Transportation Agency raising concerns over the relationship of NewLeaf and Flair Airlines Ltd. Currently, Flair Airlines Ltd., holds the operating licence from the CTA, while NewLeaf was responsible for selling the seats for the flight. 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 a licence directly.
“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 [indirect provider],” said NewLeaf CEO Jim Young. “We welcome a regulatory system in which businesses like ours can thrive in Canada as they do in other countries.”
The fledgling airline has seen high demand for their services, due to the advertised lower rates of travel, and hopes to continue operation in the spring.
Do you think that NewLeaf will succeed, or were they doomed to fail from the beginning?
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