Canada’s NewLeaf Postpones Launch
by Michele McDonald /NewLeaf Travel, which had planned to launch low-fare service in Canada on Feb. 12, postponed the launch and is refunding all tickets.
The company had envisioned bringing the ultra-low-cost carrier concept to Canada using the aircraft and crew of Flair Airlines, a 10-year-old Canadian charter carrier.
But Gabor Lukacs, a self-styled “consumer advocate” who has targeted Canadian airlines over the years, questioned whether the arrangement was legal because NewLeaf does not have its own license to operate an airline.
Jim Young, chief executive officer of NewLeaf, maintains that NewLeaf does not need a license because Flair already has one and will be operating flights.
Nevertheless, the Canadian Transportation Agency has decided to review its licensing regulations at Lukacs’ urging.
Young said that because the CTA’s decision would likely come after the Feb. 12 launch date, travelers would be subjected to uncertainty. NewLeaf postponed the launch to avoid disrupting anyone’s travel plans, he said.
NewLeaf had hoped to be the first company offering ULCC service in Canada, vying with Canadian Jetlines and Jet Naked for the title.
Young had briefly served as Jetlines’ president, but he left because getting the carrier off the ground was taking too long.
Jet Naked, which refers to stripped-down fares rather than passengers, is the “placeholder” name of a subsidiary of Enerjet, a charter airline based in Calgary. Tim Morgan, Enerjet’s chief executive officer, was a co-founder of WestJet.
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