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Five Years After Commercialization, Nav Canada Proves it is a World Leader

Nav Canada Proves it is a World Leader

Written by Raymon J. Kanduck   
Just over five years ago, Nav Canada was formed as a not-for-profit entity.
49-towerJust over five years ago, Nav Canada was formed as a not-for-profit entity. It was a bold move.Around the world, virtually every Air Navigation System (ANS) was run by each country's government. The rigidities of civil service control tended to produce systems that were unresponsive to customer requirements and in which capital expenditures were tied to political rather than operational goals.

Some governments adopted halfway solutions, creating special operating agencies to manage the systems. This approach would gain some of the benefits of privatization without the political effort required.

Canada was different. After much consultation, a near consensus emerged, supported by airlines, general aviation groups and even air traffic controllers. The ANS would be ‘commercialized', which meant that it would be operated as a business, but not owned by shareholders out to make a profit.

When Nav Canada was formed in late 1996, expectations were high. Cliff Mackay, president of the Air Transport Association of Canada (ATAC), says it has met or exceeded most of these: "The industry is pleased the way that Nav Canada has evolved. It has been responsible on costs and tried to keep fees down.After the initial fees were set, there was a reduction and it was only recently, after September 11, that we saw an increase.We were pleased that they did everything they could to mitigate the negative effects, and with the professional way that they communicated this to their customers."