CTA's review of IASP licensing challenged

A court challenge has been launched against the Canadian Transportation Agency proposed policy of not requiring Indirect Air Service Providers (IASPs) to hold a licence.

Halifax-based air passenger rights advocate Dr. Gabor Lukacs is asking the court to declare that the CTA's proposal cannot be implemented as a policy, but instead requires changing the law. Lukacs recently raised a red flag about NewLeaf Travel's lack of a licence, the Winnipeg-based IASP which postponed service last week pending the outcome of the CTA review, after launching earlier this month.

The CTA proposes to no longer require IASPs to hold a license. IASPs typically rent the aircraft and crew from another business, but have commercial control of the air service. Unlike travel agents, IASPs sell seats in their own name, not on behalf of other businesses, according to a press statement from Lukacs.

The current licensing conditions for operating an air service within Canada include: Canadian ownership, financial fitness, and having a liability insurance that covers passengers in the case of injury or death. Licenced airlines are required to set just and reasonable terms and conditions.

A copy of the court filing is available online.