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On 9/18/2016 at 9:14 AM, Malcolm said:

Didn't WestJet in the early days do the same when it found certain routes didn't generate the revenue needed to support them?

Here is the difference - WJ had the cash to develop the market. There is no doubt that New Leaf does not have the cash to deal with empty aircraft. They are  likley relying on advance ticket sales to fund daily cash requirements (like paying Flair to operate the flights).

Pretty clear that the business model is flawed. It is one thing to guess wrong on one route. It is quite another to fail in predicting demand on 4 routes.

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6 hours ago, rudder said:

Here is the difference - WJ had the cash to develop the market. There is no doubt that New Leaf does not have the cash to deal with empty aircraft. They are  likley relying on advance ticket sales to fund daily cash requirements (like paying Flair to operate the flights).

Pretty clear that the business model is flawed. It is one thing to guess wrong on one route. It is quite another to fail in predicting demand on 4 routes.

Seems to me that all airlines have the need to cut back non profitable routes. 

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2 hours ago, Maverick said:

Well done Malcolm, you quoted yourself, again. 

Now, do you have anything to say or just let it hang ominously like you do?

Once again you have over reacted to my posts.  Why not do both of us a favour and use the ignore feature of this forum and you will no longer be bothered by them.

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  • 4 weeks later...
 

NewLeaf to offer flights to Calgary for the holiday travel season

‎Today, ‎October ‎17, ‎2016, ‏‎3 hours ago | Kristine Owram

NewLeaf Travel Co. plans to offer temporary flights to Calgary during the busy holiday season.

The discount travel operator, whose flights are operated by B.C.-based charter service Flair Airlines, announced Monday  it will fly between Calgary and Abbotsford, B.C., Hamilton, Halifax and Moncton, N.B., from Dec. 16 to Jan. 8.

“We actually didn’t anticipate to be operating from Calgary within the first five months of operation. However, there is a big demand from Calgarians,” NewLeaf CEO Jim Young said in a statement.

“We have had tremendous interest and support already so we are anticipating great success, and who knows, there could be more for the region.”

NewLeaf, which styles itself as an ultra-low-cost option, launched in July with flights to 11 Canadian cities. It said last month that it would temporarily cease flights to Regina, Saskatoon, Victoria and Kamloops, B.C., between Nov. 1 and mid-December.

The company is the subject of an ongoing court challenge by air-passenger-rights advocate Gabor Lukacs, who has argued that its precarious financial situation is putting passengers at risk.

The Federal Court of Appeal will hear Lukacs’s challenge on Dec. 14.

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  • 2 months later...

Interesting ruling on who is responsible for passenger compensation:

Flair Air liable for passenger rights, not ticket reseller NewLeaf, judge says

Airline operator Flair Air has the liability for flights sold through NewLeaf

By Laura Glowacki, CBC News Posted: Dec 19, 2016 5:38 PM CT Last Updated: Dec 19, 2016 6:35 PM CT

 

(Note: CBC does not endorse and is not responsible for the content of external links.)

Customers of airline ticket reseller NewLeaf now know exactly who to complain to if things go wrong. 

Until now, it had been somewhat confusing as to which company — NewLeaf or airline Flair Air — was responsible for ensuring passenger rights are protected, said Gabor Lukacs, an air passenger rights advocate and appellant.

In June, Lukacs launched an appeal of a March 29, 2016, Canadian Transportation Agency decision, claiming the CTA lacked the jurisdiction to interpret licensing requirements for resellers like NewLeaf. But the ultimate purpose of the appeal, he said, was to nail down exactly who was liable for passenger rights.

On Dec. 15, Federal Court Judge Eleanor R. Dawson dismissed Lukacs's appeal, but in her reasoning pointed to airline Flair Air as the responsible party for passenger rights. Lukacs said he was satisfied with the outcome, even though he didn't win the case.

"There has been a very significant concern here," said Lukacs, a mathematician who has been fighting for air passenger rights since 2008. 

"What the judgment does is clarifies that it doesn't matter who's selling the ticket — whether Flair is selling directly to the public or through New Leaf, Flair is on the hook," he said.

"That's a game-changer," Lukacs said. "Ultimately it's Flair that's stuck with the liability."

Jim Young, CEO of NewLeaf Travel Company, said he was happy with the appeal's dismissal. He said Flair Air and NewLeaf had already been operating under the agreement that the airline was ultimately responsible for ensuring passenger rights. 

"In fact, the tariff that we had published is still the tariff today. We've made no changes to it," Young said. 

Tariffs are the agreements between passengers and airlines that lay out rights and responsibilities. The Canadian Transportation Agency recommends airline passengers treat tariffs like a contract, and that they understand the terms and conditions spelled out in them.

Young said if passengers run into an issue such as a flight cancellation or lost baggage, they should first contact his company, NewLeaf, to resolve the issue. Young said the first response is referring passengers to the tariff.

"We operate on behalf of Flair as the passenger reservation system," he said. "We accommodate them based on the terms and conditions in the tariff."

Passengers who are not happy with NewLeaf's response can still file a formal complaint with the Canadian Transportation Agency, but they would do so naming Flair, the airline operator.

Flair Air owner Jim Rogers confirmed his company is ultimately responsible for meeting the tariff agreement with passengers.

He said his company is "pleased to accept the decision as per our tariff." http://flairair2.ca/wp-content/uploads/RDIM-1436279-Tariff-Flair-Airlines-Ltd-for-the-Proposed-NewLeaf-flying-June-15-DA-9.pdf

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  • 5 months later...

.

Flair Airlines buys NewLeaf travel company

B.C. based airline buys upstart discount travel company

Wed Jun 07, 2017 - CBC News
By Pete Evans

Flair Airlines has bought NewLeaf Travel Company, a discount flight seller that made headlines last year for offering flights between Canadian centres at rock bottom prices.

Kelowna, B.C.-based Flair said in a release Wednesday that it has bought NewLeaf Travel Company's assets, including its "marketing, selling and distribution engine."

The two companies have been linked since NewLeaf launched last summer, offering flights for as little as $59 one way between Canadian cities such as Abbotsford, Halifax, Edmonton, Hamilton and Winnipeg.

The company has completed more than 2,200 such flights and moved more than a quarter of a million passengers in the process.

Although it marketed itself as an airline, NewLeaf was in fact just a ticket seller, while Flair Airlines owns the planes and operates the flights.

Flair says passengers shouldn't expect any disruption as a result of the transaction.

"Expansion is planned for new destinations beginning this year, plus the fall and winter domestic schedule will be released shortly," Flair said in a release.

.

 

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Flair Airlines purchase of NewLeaf could lead to cheaper flights, better service for Canadian travellers

After buying discount travel company, B.C.-based airline expected to compete with major carriers

By Pete Evans, Aaron Saltzman, CBC NewsPosted: Jun 07, 2017 12:50 PM ET Last Updated: Jun 07, 2017 2:46 PM ET

Flair Air is a charter service that operates a fleet of five Boeing 737-400s. (CBC News)

Flair Airlines has bought deep discount flight seller NewLeaf Travel Company in a move one analyst says will lead to greater competition and lower airfares for Canadian travellers, at least initially.

"I think it's a great move, particularly for the travelling public," said Ken Beleshko, of Avacon Aviation and Aerospace consulting.

Kelowna, B.C.-based Flair said in a release Wednesday that it has bought NewLeaf Travel Company's assets, including its "marketing, selling and distribution engine." The purchase means Flair Air immediately moves from a charter company to a full-fledged, scheduled airline with its own reservation department, airport passenger services facilities, and full control over the operations side of the business.

Both Flair and NewLeaf have been linked since NewLeaf launched last summer, offering flights for as little as $59 one way between Canadian cities such as Abbotsford, Halifax, Edmonton, Hamilton and Winnipeg.

The company has completed more than 2,200 such flights and moved more than a quarter of a million passengers in the process.

Although it marketed itself as an airline, NewLeaf was just a ticket seller, while Flair Airlines owned the planes and operated the flights.

"Expansion is planned for new destinations beginning this year, plus the fall and winter domestic schedule will be released shortly," Flair said in a release.

It also said the acquisition of NewLeaf establishes it "as Canada's third national airline, providing service coast to coast."

That may be overreaching a bit considering Flair has just five Boeing 737-400s, all with relatively limited range. 

The company has also been at the centre of controversy recently as one of the operators involved in "The Mexican Game"

A CBC News investigation discovered Air Transat directed Flair — and Flair agreed — to mislead aviation authorities and passengers about unscheduled stops on flights from Mexico.  Flair was operating those flights on behalf of Air Transat, but its aircraft could not make it all the way back to Canada in some cases without stopping to refuel. 

Passengers on those flights also complained about Flair's aircraft, saying the planes — which range in age from 24 to 27 years old — were dirty, had rickety seats, lacked modern amenities such as seat-back entertainment, and even the toilets malfunctioned.  

'Third national airline or not, the mere presence of Flair Air as a full-fledged airline will mean more available flights and lower prices, according to Beleshko.

"If they're going to make this a successful venture, they're going to have to offer frequent service between major city pairings such as Vancouver-Toronto, Edmonton-Calgary, Montreal-Toronto and so forth to tap into that lucrative market."

Beleshko also expects Flair to attempt to compete with both WestJet and Air Canada on regional short-haul service between cities like Winnipeg and Saskatoon.

That will prompt both WestJet and Air Canada to lower their prices and offer more flights and more amenities, he says.

"You can rest assured that the two major airline carriers, Air Canada and Westjet, are going to be very protective of their market share and they will go head to head with Flair or any other deep discount carrier that wants to enter the market."

Canada's aviation history is littered with airlines that either went out of business or failed to get off the ground. Flair's owners actually tried this once before with Greyhound Air.

"And it was a short-lived proposition because they weren't getting the ridership and it was a losing proposition financially." said Beleshko, adding Flair/NewLeaf will face many of the same challenges.

"I would suggest that unless they [Flair] have very deep pockets and investors that are willing and have staying power. It's going to be a tough haul."

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