Twelve days after making a splashy debut with a series of announcements across Canada, discount airline NewLeaf has put its plans on hold.
The airline announced Monday that it will refund all credit card purchases made for seats on its flights, and suspend ticket sales.
Airline officials blamed “ambiguity” over whether they require a new licence from the Canadian Transportation Agency to operate as an airline.
In a statement, company CEO Jim Young said that he believed a new licence was unnecessary due to NewLeaf’s arrangement with Flair Airlines, a B.C.-based airline.
“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,” Young said.
“As soon as the review is complete, we will make any required amendments if necessary, and resume sales as soon as possible.”
NewLeaf, which had planned to run its first flights on Feb. 12, now says it hopes to start selling seats again at some point in the spring.
The airline’s initial flight schedule included service from Hamilton to Halifax, Regina, Saskatoon, Winnipeg and Kelowna, B.C.
Customers had already made “thousands” of bookings for NewLeaf flights online, Young said.
