NewLeaf (Winnipeg International) has delayed its launch plans pending the outcome of a Canadian Transportation Agency (CTA) review of licensing regulations for Indirect Air Service Providers. As a virtual carrier, the start-up had planned to charter B737-400s from Flair Airlines (F8, Kelowna) for budget flights connecting Regina, Saskatoon, Halifax, and Abbotsford effective February 12.
NewLeaf says it was in full compliance with Canadian regulations when it was unveiled earlier this month. Under its agreement, Flair Airlines held the CTA operating licence, while NewLeaf offered seat sales.
“The reason why we launched on January 6 is because it was confirmed that we were in full compliance of CTA licensing regulations,” NewLeaf Chief Executive Officer Jim Young said. “The CTA gave us an exemption from holding a licence directly while it reviews its legislation.”
The CTA says it is requesting comments from the aviation industry and other interested stakeholders on whether persons who have commercial control over an air service, but do not operate aircraft (Indirect Air Service Providers), should be required to hold a licence.
"The Agency's current approach to determining which person is operating a domestic air service originated from its 1996 Greyhound Decision and requires the person with commercial control to hold the licence, irrespective of whether the person operates any aircraft.
The Agency, after careful review and study, is considering a change in its approach to determining who is operating an air service in situations where a person has commercial control over an air service, but does not operate aircraft. It is important to note that a review of the Act is underway and may recommend changes to the legislative framework. Regulatory reforms may also be contemplated."
Pending the clarification of the CTA's requirements, NewLeaf says it will refund all credit card transactions for reservations already made adding that it hopes to resume taking bookings in the spring.
