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Discount Airline NewLeaf Forced to Push Back Launch

January 19th, 2016  |  Canadian Business

Don’t pack your bags. If you reserved a flight with NewLeaf Travel, a refund is coming your way. The discount airline comes under review just weeks before it was scheduled to launch its ultra cheap flight service.

Earlier in January, NewLeaf excitedly announced that its discount flights would start on February 12. But its plans have suddenly changed.

According to NewLeaf’s press release, the Canadian Transportation Agency (CTA) is hesitant about NewLeaf’s service and has decided to review licensing regulations. Here’s why this review puts NewLeaf’s launch on hold.

The new airline does not actually own or operate any aircrafts; it just sells discounted tickets. However, the CTA is in the process of determining whether or not indirect air service providers, like NewLeaf, should be required to obtain its own agency license.

NewLeaf is currently partnered with Flair Airlines Ltd., a chartered airline from British Columbia. Jim Young, the CEO of NewLeaf, says Flair has a CTA license. Since its partner is licensed, Young argues that NewLeaf doesn’t need to be. He worries that the review is an attempt to resist NewLeaf’s affordable pricing model.

While the review continues, NewLeaf says it hopes to reschedule flights to the spring.

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