Prince George, B.C.-  When  NewLeaf Airlines announced it would be offering  low cost flights through a number of  airports in Canada,   it  was the buzz  among   Canadians looking for  more cost effective  flights,  but  today, the airline says it is  holding off,  and refunding all  tickets until   there is  more clarity  from the Canadian Transportation Agency.In a release issued today, NewLeaf says it is postponing all flights until the CTA completes  a review of licensing  regulations for Indirect Air Service Providers such as NewLeaf.

“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” states NewLeaf Chief Executive Officer  Jim Young in  the release.

Young goes on to explain “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.

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.

NewLeaf had  agreements with  airports in Kelowna, Abbotsford, Saskatoon, Regina, Winnipeg, Hamilton, and Halifax.

The low cost  no frills flights were being offered from $89 to $149 dollars.