No-frills NewLeaf selling tickets again, taking to air July 25
Carrier back in business months after hitting the pause button to await federal regulatory ruling
NewLeaf Travel, a no-frills air carrier that was grounded in January over licensing questions, says it’s finally ready for takeoff — beginning next month.
The Winnipeg-based company says it will start flying July 25 with its partner Flair Airlines, using 156-seat Boeing 737s. It announced plans to serve 12 cities across Canada, including 22 flights a week from Hamilton — up from its original seven cities.
Fares start at $79 one-way, including all fees and taxes from Edmonton to Kamloops, B.C., or $89 from Saskatoon, Sask., to Kelowna, B.C., or $99 from Hamilton to Halifax. The non-stop routes only run two or three times a week.
“Our job is to get you there with a low fare,” CEO Jim Young said at a news conference in Winnipeg, promising fares will be 25 to 35 per cent lower than competitors.
“We’re focused on the leisure traveller. We’re focused on those who want to go to family reunions this summer.”
Included in the fare is a seat and seatbelt, but if passengers want any extras including assigned seats, a carry-on bag or drinks and snacks, they’ll pay out of pocket.
If they pay in advance, they’ll get a discount. For example, to bring along a carry-on bag is $30 at booking, $40 at airport check-in and $80 at gate check-in.
The launch announcement comes even though a federal appeals court is expected to hear a challenge from air-passengerrights activist Gabor Lukacs over the Canadian Transportation Agency’s decision to allow NewLeaf to operate.
Last January, just a week after beginning sales, the upstart carrier ran into trouble over whether it needed its own licence to operate. It suspended sales, refunded tickets and put its launch on hold.
The company argued it did not require a separate licence because it is not an airline, purchasing seats instead from Kelowna-based Flair Airlines and reselling them to the public. Flair, which operates a fleet of five Boeing 737-400 jets, is licensed by the Canadian Transportation Agency.
In March, the agency sided with NewLeaf, ruling that the company does not need a licence to market and sell air services to the public.
Lukacs cautioned travellers not to buy a ticket with NewLeaf, saying they have no recourse should NewLeaf go out of business.
“Stay away from NewLeaf, the risks are much greater than the benefits,” he said.
Young dismissed any suggestion that passengers might find themselves stranded if the appeals court sides with Lukacs, noting more than a dozen operators use a similar model in the Far North.
“We don’t believe there is a question mark. We have one individual who claims to have the moral authority to represent all Canadians and that is absolutely to the contrary. He just doesn’t like that decision,” he said, although he conceded Lukacs has the right to appeal the case.
“That shouldn’t mean we all sit around and wait for somebody to make a decision for us. We have a business to run,” Young added.
NewLeaf says its flights will be operated by Flair and Flair’s subcontractor Enerjet, which had looked at starting its own discount carrier under the name JetNaked.
“Our job is to get you there with a low fare. We’re focused on the leisure traveller. We’re focused on those who want to go to family reunions this summer.” JIM YOUNG NEWLEAF CEO
Vancouver’s Canada Jetlines is also trying to launch and has asked Ottawa for an exemption on foreign-investment rules to 49 per cent from 25 per cent.
“We do have a lead investor out of Europe that is interested,” said John Korenic, a Canada Jetlines spokesman.
NewLeaf’s ultra-low-cost carrier is modelled after companies like Allegiant Air and Spirit Airlines, whose former CEO, Ben Baldanza will serve as board chair of NewLeaf Travel.
Most of NewLeaf’s specific routes are not served by rivals like Air Canada or WestJet Airlines, linking secondary airports. “We love the calmer atmosphere, cheaper parking and more direct baggage service,” Young said, adding fares can be lower due to lower operating costs at those airports.
Dean Dacko, NewLeaf’s chief commercial officer, said routes are concentrated in the west in part because rivals like WestJet have reduced service due to a weaker Alberta economy.
The Edmonton airport was willing to offer a deal, so it’s now on NewLeaf’s route map, he said.
While Dacko said the focus is on Canada for the summer and fall, it intends to look at sun destinations for the winter, likely U.S. cities and possibly Mexico and the Caribbean.