NAV CANADA to refund $60 million to customers and reduce base rates
(Ottawa, August 11, 2017) – NAV CANADA today announced it will proceed with its proposal to decrease existing base rates charged to its customers by an average of 3.5 per cent and also implement a temporary one-year rate reduction of 0.4 per cent. This effectively continues the temporary rate reduction that was implemented last year. The Company also announced its decision to reimburse its customers approximately $60 million in a one-time 4.6 per cent refund.
The proposal to revise charges was released on May 30, 2017 and was subject to a mandatory consultation period of at least 60 days.
“Higher than expected traffic growth this year has put us in a position to be able to refund $60 million to our customers,” said Neil Wilson, President and CEO. “In the past, NAV CANADA has spread the return of previous years’ surpluses, when applicable, by temporarily reducing rates for the coming year. With the unusually high traffic growth, we decided to implement a refund, which will enable our customers to fully benefit sooner.”
The 3.5 per cent average reduction to base rates and the 0.4 per cent one-time rate reduction will both become effective on September 1, 2017; the beginning of the Company’s fiscal year. For general aviation charges (Annual, Quarterly and Daily - Major Airport charges), the reduction will be implemented on March 1, 2018 consistent with the revision cycle for these charges.
The revised base rates will come into effect just as the 3.9 per cent temporary rate reduction, which is currently in place, is set to expire. In 2016, NAV CANADA implemented that one-year rate reduction in effect from September 1, 2016 to August 31, 2017.
NAV CANADA service charges are levied on airlines and other owners and operators of aircraft to recover the costs of providing air navigation services.
Details of NAV CANADA's revised service charges are available here:
Announcement of Revised Service Charges
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.
We are a founding partner of 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.
For further information, please contact:
Director, Government and Public Affairs
National Manager, Media Relations
Media Information Line: 1-888-562-8226