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NewLeaf Travel Company has been cleared for takeoff by the Canadian Transportation Agency (CTA).

The agency ruled Tuesday the Winnipeg-based start-up does not need a licence because it is considered a reseller and not a carrier.

“This is an important determination that will help create clarity and predictability for the air industry and travellers,” said Scott Streiner, Chair and CEO of the CTA.

“The determination recognizes the evolution of business models, encourages innovation and consumer choice in the market, and ensures continued protection for passengers.” Tweet This

NewLeaf will not operate any aircraft, but market and sell air services to the public. The company’s partner, Flair Airlines, a carrier based in Kelowna, B.C., has a licence.

WATCH: Discount airline NewLeaf postpones service

2:09 Discount airline NewLeaf postpones service Discount airline NewLeaf postpones service

NewLeaf announced Jan. 6 it would start selling flights from Halifax, Hamilton, Saskatoon, Kelowna, Regina, Winnipeg and Abbotsford with prices ranging from $89 to $149.

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The company initially began taking reservations in January for flights scheduled for take-off in February, but voluntarily postponed service pending a ruling on licensing of all indirect air carriers by the CTA.