Chalk one up for the little guy.

NewLeaf Travel, which began selling ultra-low cost airline tickets earlier this year only to halt sales a few days later, has received the go-ahead from the Canadian Transportation Agency (CTA) to resume sales.

But don’t call NewLeaf an airline. The travel company, which plans to operate its service under a charter agreement with Kelowna-based Flair Airlines, Ltd., must not “hold itself out to the public as an air carrier operating an air service” according to the new CTA ruling.

When NewLeaf first launched in early January, it offered introductory fares starting from C$ 89 one way as well as a promise to keep fares low by utilizing lesser-used regional airports around Canada. Although the airline received so many inquiries its website temporarily broke, just a few days later it halted all ticket sales while it underwent further review by the CTA. At the time it refunded all tickets sold.

At issue was NewLeaf’s use of the term “ultra low cost carrier” and more specifically the term “carrier.”

Now the CTA has concluded its review with the following announcement: “The Agency determined that resellers – companies who purchase seats from an air carrier and resell them to the public – will not be required to hold an air licence, so long as they do not hold themselves out to the public as being an air carrier that is operating an air service.”

The ruling further addressed NewLeaf, stating, “The Agency also determined that NewLeaf Travel Company Inc., should it proceed in a manner consistent with its proposed business model, would be a reseller that is not operating an air service and therefore, would not be required to hold an air licence…”

While most consumers were and are firmly in favour of the new lower-fare flights, some passenger advocate groups remain concerned about the lack of formal language on consumer protection policies for NewLeaf passengers.

The language by the CTA states that "Consumer's air travel will continue to be subject to the terms and conditions of the actual air carrier's tarrif..." In other words, items like lost baggage and flight cancellations will be covered under Flair Airlines and not NewLeaf Travel's terms and conditions.

"I'm always concerned when consumer protection is lessened in general but I understand the environment we operate under and that balance is always a fine balance," said Richard Smart, president and chief executive of the Travel Industry Council of Ontario in a statement to the press.

Although there’s no official word from NewLeaf about when it plans to resume sales, a post on the operator’s Facebook page reads, “With the completion of the CTA’s confirmation, we will be implementing and adhering to the regulations outlined and will resume booking in the very near future. Stay tuned right here on Facebook for future updates!”

Additionally, NewLeaf thanked the CTA for their speedy review process and Canadian consumers for their “overwhelming support.”

“This shows that Canada wants this type of low-cost option, and we are excited for the results of the review and our future.”

For up-to-date information, follow NewLeaf on their Facebook page at www.facebook.com/newleaftravel. 

Follow @MonicaPoling