NAV CANADA proposes rate
reduction to extend lower service charges
(Ottawa, May 28, 2018) – NAV
CANADA today unveiled a rate revision proposal that would decrease rates by an
average of 0.4 per cent. This effectively continues the one-year temporary rate
reduction that was implemented on September 1, 2017. On average, our customers
will pay about the same rates in fiscal 2019, as they did in fiscal 2018.
Traffic over the past year
has grown at a rate greater than forecast. The strong traffic results in the
current fiscal year coupled with traffic growth projections for fiscal 2019 has
in effect, enabled the Company to cancel the 0.4 per cent rate increase that
was set to begin on September 1, 2018, upon the expiration of last year’s
“While we are keeping our
rates low, NAV CANADA will be enhancing air traffic services,” said Neil Wilson, President
and CEO. “In fiscal 2019 the Company will begin trialing space-based ADS-B
surveillance technology in its air traffic control operations for both domestic
and North Atlantic oceanic airspace. This will significantly increase safety as
it will allow for aircraft tracking in airspace currently without surveillance.
“In addition to enhancing
safety, we expect that ADS-B equipped aircraft will be able to obtain
operational benefits and fuel savings. NAV CANADA will use this trial period to
work with its customers to help them obtain the maximum benefits from this enhanced
“During the trial period, the
Company will not seek to recover the costs incurred for its use of space-based
ADS-B surveillance data. There will be no corresponding adjustment to our
service charges,” said Wilson.
The revisions to base rates
will vary by service, and are intended to ensure that rates are aligned with
anticipated service costs and air traffic and are consistent with the charging
principles included in the Civil Air
Navigation Services Commercialization Act.
“This is good news for our
customers” said Wilson. “Service charges were set to rise on September 1 when
the existing temporary one year rate reduction expired. The reduction in base
rates will allow the temporary rate reduction to continue.”
These proposals are subject
to the mandatory notice and consultation period required by legislation. Input
received during the consultation period will then be reviewed by the Company’s
Board of Directors.
For more details of NAV CANADA's
proposed revised service charges:
View: Notice of Revised Service Charges
View: Details and Principles Regarding Proposed Revised Service
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record, and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.
NAV CANADA is a partner in Aireon LLC, an international joint venture deploying a space based Automatic Dependent Surveillance-Broadcast (ADS-B) system that will expand air traffic surveillance to all regions of the globe.
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