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NAV CANADA releases proposal to change service charges

​May 20, 2020 – Ottawa - NAV CANADA today released, for consultation, a proposal to revise customer service charges, effective September 1, 2020.  The proposal calls for increased service charges averaging 29.5% in base rates and includes provisions to ease the cash flow impact of the increase on its customers through payment deferral mechanisms.

The impact of the COVID-19 pandemic on the aviation industry has significantly reduced NAV CANADA’s liquidity.  Revenues and cash inflows have been substantially reduced as compared to its approved budget.  All operating and capital spending has been reviewed and actions have been taken to reduce spending and cash outflows while at the same time ensuring the continued fulfillment of NAV CANADA’s statutory mandate to safely operate and maintain the Canadian air navigation system as an essential service.  NAV CANADA will continue to pursue all opportunities for additional operating and capital spending reductions.

NAV CANADA acknowledges that this increase comes at a time when its customers are also in exceptionally difficult circumstances as a result of the COVID-19 pandemic and is therefore proposing to defer the fiscal 2021 cash impact of the increases to its customers, over a five-year period.

“NAV CANADA is proposing this rate action only after having actively pursued all available alternatives, including government assistance”, said Neil Wilson, President and CEO. “All available alternatives, including further government assistance will continue to be explored and utilized in order to minimize or  avoid the proposed rate increase.”

As the majority of its costs are fixed, NAV CANADA cannot fully offset significantly lower revenues and cash inflows due to recent decreases in air traffic volume during COVID-19.  The consequent reduction of available liquidity has prompted NAV CANADA to seek additional debt financing.  In order to meet the additional indebtedness provisions of its existing debenture agreements however, it must achieve a minimum level of revenue in its fiscal 2021 year.  The proposed service charge increases are required for NAV CANADA to meet that minimum revenue level.

The proposal is now subject to the mandatory 60-day consultation period required by legislation. Input received during the consultation period will be considered by NAV CANADA’s management and Board of Directors, prior to a final decision being made on the proposal. 

Details of NAV CANADA's proposed revised service charges are available here:

View: - Notice of Revised Service Charges [PDF]

View: - Details and Principles Regarding Proposed RevisedService Charges [PDF]​​

Caution Concerning Forward-looking Information

This news release contains “forward-looking statements” within the meaning applicable to Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “proposes”, “plans”, “anticipated”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. NAV CANADA is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this release. NAV CANADA cannot assure that actual results will be consistent with these forward-looking statements and NAV CANADA assumes no obligation to update or revise the forward-looking statements contained in this release to reflect actual events or new circumstances, except as required by applicable securities legislation. 


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.

For further information, please contact:

Brian Boudreau
Manager, Media Relations

Media Information Line: 1-888-562-8226​