NewLeaf facing several hurdles with launch date fast-approaching

HALIFAX — Less than two weeks before flights are set to take off, NewLeaf says sales for its discount air service are high.

Although he declined to discuss specific sales numbers, Chief Commercial Officer Dean Dacko said, “Our bookings are performing very, very well, particularly if we look at Eastern Canadian markets. They’re way ahead of our forecasts.”

READ MORE: As air tickets get cheaper, carriers pare costs. What’s fair?

But, after checking with most of NewLeaf’s network of airport partners, Global News has discovered much of the business is still in the planning stages — including negotiating amounts for landing fee deposits at some airports — ahead of flights scheduled to begin to fly July 25.

Some airports, like the one in Moncton, N.B., report “everything is set up.” Officials with Hamilton’s John C. Munro International Airport said they’re “working in partnership with NewLeaf” for the first flights. Edmonton International Airport is “still working to finalize arrangements.”

Kelowna’s airport is “still talking” with NewLeaf, but there’s no deal yet.

But, another British Columbia airport, in Fort St. John, has suddenly been removed from the NewLeaf network.

READ MORE: NewLeaf airline postpones service, refunds credit cards pending review

“Our customers have voted overwhelmingly for direct non-stop flight service between Edmonton and Abbotsford,” NewLeaf said in an email statement. “Customers have told us they want a direct flight, so we’re giving them a direct flight on that route. As a result, effective immediately we will be discontinuing our stop over in Fort St. John.”

WATCH: NewLeaf gets permission to take off, but low-cost flights come with a catch. Ross Lord reports.

2:29 NewLeaf gets permission to take off, but low-cost flights come with a catch

The company promises to contact customers, to help arrange alternate travel plans.

The new developments re-enforce concerns of critics, including Halifax-based passenger rights advocate Gabor Lukas.

“They tell the public, ‘Don’t worry, we’ll have a flight for you.’ But, they cannot say that in good faith because they don’t have the agreements in place,” Lukacs told Global News.

READ MORE: Avoid new ‘ultra low-cost’ airline, passenger advocate warns

Before Newleaf even gets out of the gate, there are also questions about the company’s finances, including how it’s going to pay the bills.

Marketing consultant Hessie Jones said NewLeaf owes her $76,000 for market research she invoiced for more than a year ago.

“There was a lot of times when we thought that they had payment and it never came through,” she said.

Dacko declined to discuss her claims.

“It’s really not appropriate to get into discussions in this environment. We’re obviously handling things appropriately and we’ll get that done,” he said.

WATCH: What consumers need to know about Canada’s new discount airline NewLeaf

3:09 What consumers need to know about Canada’s new discount airline NewLeaf

NewLeaf’s business plan is complicated.

It sells the tickets, but another company, Flair, will provide the crews and planes. Some flights will also be sub-contracted to a third party, Enerjet.

That could leave travellers with disputes potentially dealing with more than one party.

But Newleaf said it’s confident, noting it has the approval of Canadian airline regulators.

“They’ve given us a total stamp of approval and that’s who Canadians should trust,” said Dacko.

Follow @rlordglobal