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SERVICES - Service Charges and Administration

Service Charges Review 2005

Service Charges Review 2005
April 2006
NAV CANADA has made a decision on the proposals set out in the Notice of New and Revised Service Charges dated December 2005. This Notice was released for consultation on December 2, 2005. The proposals were to be phased-in with the first changes taking effect on March 1, 2006. However, it was decided that more time was needed to consider the comments and suggestions made in submissions received from stakeholders during the consultation period.

The changes that the Company will be proceeding with at this time are set out in the Announcement of New and Revised Service Charges dated April 2006. Several of the proposals released in December have been revised as a result of the feedback received during consultation. The changes will be phased-in, starting May 1, 2006.

A summary of representations received during consultation and the Board’s assessment, along with the outcome, are presented in the paper entitled Background Information on Announcement of New and Revised Service Charges – April 2006 Resulting from Service Charges Review.
 
December 2005
Extensive consultation on the Company’s charging methodology and related areas was conducted in early 2005 with national and international air transport associations, business and general aviation associations, regional and provincial aviation organizations and other interested parties. Following a review of the representations received, the Company is proposing some changes. The results of the charges review are summarized in the document Service Charges Review: Results. The proposed changes were released for consultation on December 2, 2005 in the Notice of New and Revised Service Charges. Representations must be received by February 10, 2006.
 
January 2005
NAV CANADA has developed a discussion paper on its service charges. The purpose of the paper is to serve as a starting point for a consultative process aimed at obtaining stakeholder views, concerns and suggestions as to whether the existing charging and related cost allocation methodologies should be retained, updated or modified. While the existing charges are fully consistent with the charging principles of the Civil Air Navigation Services Commercialization Act, good business practice would suggest that a review of the methodologies would be appropriate from time to time. Considering that the current methodologies were implemented in 1999, a review now seems timely.
 

Service Charges Discussion Paper 2005 [PDF]