WILL NEWLEAF NEED A LICENCE Appeals Court to review reseller requirements

Posted on 06/13/2016

The Federal Court of Appeal will review whether NewLeaf and similar "reseller" airlines require a licence to operate under the law, according to a ruling issued last week. In January 2016, NewLeaf began selling tickets to the public for various domestic flights without holding any licence to operate an air service in Canada. Days later, NewLeaf was forced to suspend sales and refund tickets due to concerns raised about its lack of a licence.

On March 29, the Canadian Transportation Agency (CTA) ruled that NewLeaf could operate without a licence. It is this decision that the appellate court has decided to review.
The legal challenge to the CTA's ruling was launched by Halifax-based air passenger rights advocate Dr. Gabor Lukacs.
"The lack of a licence means that we do not know whether NewLeaf has the financial means to provide the service that it promises, and passengers are not protected if NewLeaf cancels or overbooks flights," said Lukacs.
"Parliament imposed licensing rules to protect the public. The CTA cannot overrule Parliament."
In a decision last week, the court held that, "contrary to what NewLeaf asserts, the materials filed do raise an arguable case and Dr. Lukacs does have standing to commence this appeal, either as a private or public interest applicant."
The court also recognized Lukacs as an air passenger rights advocate having "a genuine interest in the issues raised."
The court decided to expedite the appeal, but no hearing date has been fixed yet.