Canada's Newest Airline Starts Feb 12

[Dizzy1]

NewLeaf just made the announcement in Winnipeg and will make another announcement later today in Kelowna ...

http://flynewleaf.ca

Being an Ultra Low Cost Carrier, the concept will be new to many Canadians where you have to pay for everything including carry-on luggage. Its a great concept and can work very well if you know how to travel, however, as long as the fares are significantly lower than the competition it could work, but once the base fare creeps up then there really is no point.

Just for comparison, the NewLeaf Fare is only $90 cheaper one way from Kelowna to Hamilton than it is with WestJet or Air Canada from Kelowna to Toronto, so $65 cheaper one way after you add a carry on. According to the live presentation, the fares are introductory prices meaning they will go up which will bring their fares online with the competition.

[The Green Barbarian]

Air Canada and WestJet have settled into a nice zone where they rarely compete anymore on price, they both just charge the same and more than enough to make lots of money. I believe in economics they called that an "oligarchy". About time someone moved in and shook things up, kind of like how WestJet shook things up 20 years ago when they poked the oligarchy enjoyed by Canadian and Air Canada.

[Captain Awesome]

Noticed they don't fly to YVR, only Abbotsford.

Meh.

[Glacier]

http://www.castanet.net/edition/news-st ... htm#156447

[gman313]

pretty funny.

We don't have regulations for you so we are going to ground you.

[gman313]

I should add.

We don't have regulations for you so we are going to ground you. Thanks for trying to start a business and support the economy.


For drone operators: We don't have regulations for you so we are going to let you do whatever you want.

[Nom_de_Plume]

gov't agencies do this all the time. If you don't fit into a prescribed box they flip their minds and shut you down until you can convince them that they should just add another box for your type of biz, this happened a few years ago with slaughterhouses in the province.
They had no idea what to do with tiny mom and pop sometimes even mobile slaughterhouses, they first tried fitting them into the big boxes and then put them all on hold til they figured it all out. It was a bit of a mess but eventually they had to add a whole set of new boxes, those that managed to stay at it though all that without losing their minds eventually saw it work itself out.

[GordonH]

Wonder if this one will actual survive, or go the route of others.
Zip
Jetsgo
Greyhound Air

[Dizzy1]

Sources in the industry have said that the CTA is reneging their original blessing in regards to the licence under concerns from a couple of other airlines. Of course, I'm not at liberty to say which of course ;)

[Dizzy1]

A more complete statement from their website ...

NewLeaf temporarily postpones service while the Canadian Transportation Agency completes its review of aviation licensing regulations
(Winnipeg, MB – January 18, 2016) NewLeaf Travel Company announces that it is temporarily postponing sales of airline tickets pending a Canadian Transportation Agency (CTA) review of licensing regulations for Indirect Air Service Providers. NewLeaf will also refund all credit card transactions for reservations that were scheduled to begin on Feb. 12, 2016.
“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” explains NewLeaf Chief Executive Officer Jim Young.
NewLeaf aims to resume taking reservations in the Spring. “Canadians have clearly spoken that they want this type of low‐cost service. The overwhelming demand for tickets shows the need for affordable travel in Canada. Hundreds of thousands of people visited the NewLeaf website when ticket sales began. Thousands made bookings,” said Young.
“The reason why we launched on January 6 is because it was confirmed that we were in full compliance of CTA licensing regulations,” says 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.”
“As with any success that threatens to change the status quo, there are those that will resist that change and take any measures necessary to maintain the existing playing field, even if it is to the detriment of the vast majority and the benefit of the very few,” said Young.
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 review applies to all persons operating in this manner and is not limited to NewLeaf's proposed business venture with Flair Airlines Ltd. As part of its review, the Agency is consulting with, and seeking comments from, stakeholders before finalizing its approach. The consultations end this Friday, Jan. 22.
Anyone wishing to express their opinion is encouraged to do so through the CTA’s consultation:
https://www.otc‐cta.gc.ca/eng/consultation/consultation‐requirement‐hold‐a‐licence
NewLeaf Travel initially launched its website and started selling tickets to seven Canadian destinations on Jan. 6, 2016. The Canadian public’s response to NewLeaf’s launch of low cost airfares for those routes has been overwhelming, and reinforces the fact that Canada needs, and can support, an ultra low cost carrier that creates competition in air travel.
News Release

“We’re taking the high road in the way that is the most respecting of the consumer,” says Young. “As soon as the review is complete, we will make any required amendments if necessary, and resume sales as soon as possible.”
Those who made reservations are guaranteed the opportunity to re‐buy their seat for the price they paid for it when NewLeaf resumes sales.

http://action.flynewleaf.ca/NewLeaf_-_J ... FINAL2.pdf

[Always Sunny]

I hope it works out for them. It's nice to have a more affordable airline that caters to places are aren't just Vancouver, Calgary, or Toronto.

I was listening to the CEO on the radio today and respected the fact that they refunded everyone right away and something like 25 days before the first scheduled flight. It was definitely decent of them to not wait until a few days out before trying to sort things out, at which point it would be ridiculous for customers to find a reasonably priced alternative.

[gman313]

Wonder if this one will actual survive, or go the route of others.
Zip
Jetsgo
Greyhound Air

With Jim Rogers managing the operations and Lapointe and his crew doing the maintenance they have a shot.

KF also did the flying for Greyhound and when Greyhound was purchased by Laidlaw a business decision was made to stay in the bus business not the airline business and that was the end of that.

Jetsgo folded because WestJet, who had a bigger bank account, priced themselves at a loss which forced jetsgo to lower their prices until they folded.

I think they have a shot but the market is too small for a third national airline. If they can find their niche they will make it.

Canadian North has workforce transportation (Flair used to)
Air North has workforce transportation and some regular northern resident travelers
CanJet has some of the east coast locked up.

Not much room

[Dizzy1]

JetsGo folded because of Michel Leblanc.

Greyhound folded because of the business model, while a neat concept, the loads were dismal.

Zip was never actually planned and was the result of Air Canada taking over Canadian which gave them a fleet of B737-200s and a lot of Union issues regarding crew resulting in Zip.

Another source is saying that one of the key players in the agreement has decided to pull out of the arrangement.

Porter Airlines who is based out of Toronto Island airport is also eying some expansion right now as their petition to expand Toronto Island airport has been denied.

I'm still not convinced with NewLeaf's business model in using secondary airports, I just can't see the market being there in Canada.

Don't forget, WestJet was grounded by Transport Canada as well in its first months of service.