NewLeaf Travel says it hopes to be back up and running in a couple of months.
Yesterday, the Canadian Transportation Agency ruled the discount carrier does not need an air license. It can sell seats on aircraft operated by Flair Airlines, which does have a license.
NewLeaf postponed its launch and refunded tickets to customers in January after the Canadian Transportation Agency announced it was reviewing that legislation.
Jim Young, CEO of New Leaf, says the decision is good news, but they still have a few things to do before they can relaunch. Though they don’t need a license, he says the government has created a new definition called ‘reseller’.
“With that comes some responsibilities to us in terms of how we hold ourselves out to the marketplace as a reseller, so we’re going to be going through the regulations and adjusting our marketing messaging and other terms to ensure that the public clearly understands we’re reselling seats on Flair Airlines.”
Young says then they will sit down with Flair to pick a new launch date – hopefully within 45-60 days.
“We’re focusing on this very busy summer season. We think it’s a great time for Canadians to get out and see their own country given the where the US dollar stands and other conditions around the world,” he said.
More than 4,000 people booked seats with NewLeaf in less than seven days before they decided to ground its flights while waiting for the CTA decision.
Young says those customers will be able to buy a ticket to their destination at the same price they originally purchased it for.
In January, NewLeaf was offering flights to Halifax, Hamilton, Regina, Saskatoon, Kelowna and Abbotsford for as little as $89.
Fares included a seat and a seatbelt. Checking or carrying on a bag, selecting a seat and other services were paid add-ons.
Young says they plan to offer similar routes this summer, but with more destinations.