Just days after the company announced it would be entering the marketplace, NewLeaf Travel says it is halting sales and offering refunds to customers.
The company says it is postponing sales of airline tickets pending a Canadian Transportation Agency (CTA) review of licensing regulations. The announcement came down Monday afternoon, with the no-frills airline saying it would also refund all credit card transactions for reservations that were scheduled to begin on February 12th.
“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” explained NewLeaf Chief Executive Officer Jim Young.
Photo Credit: NewLeafWhen the airline launched it announced $89 flights one-way.
NewLeaf says it aims to resume taking reservations in the spring, but this comes after thousands of people have already taken advantage of the discount airline.
“The reason why we launched on January 6th is because it was confirmed that we were in full compliance of CTA licensing regulations,” said Young. “The CTA gave us an exemption from holding a licence directly while it reviews its legislation.”
Under a charter arrangement with Kelowna-based Flair Airlines Ltd., Flair held the CTA operating licence, while NewLeaf offered seat sales.
“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 IASP,” said Young. “We welcome a regulatory system in which businesses like ours can thrive in Canada as they do in other countries.”
Photo Credit: NewLeaf
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 airline launched on January 6th, 2016 and offered low cost airfares for routes out of Abbotsford, Kelowna, Hamilton, and more.
“We’re taking the high road in the way that is the most respecting of the consumer,” added Young. “As soon as the review is complete, we will make any required amendments if necessary, and resume sales as soon as possible.”
According to the company, those who made reservations are guaranteed the opportunity to re-buy their seat for the price they paid for it when NewLeaf resumes sales. Anyone wishing to express their opinion is encouraged to do so through the CTA’s consultation.
