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NAV CANADA announces decision on service charge revisions

Oct. 18, 2013, Ottawa - NAV CANADA today announced its decision to implement the revisions to its customer service charges that were proposed in the Notice of Revised Service Charges, released for consultation in June 2013.


October 18, 2013
Carey Fredericks

The revisions will come into effect on November 15, 2013 instead of October 1, 2013, as originally proposed.

The Company will eliminate an exemption for certain flights from its enroute charge. Previously, flights operating between an airport with staffed NAV CANADA or Department of National Defence facilities and an aerodrome that is neither staffed nor certified did not pay enroute charges. The exemption will be retained, however, for flights operating between aerodromes north of 60 degrees North latitude.

The Company will also implement revisions to its credit terms and conditions, as proposed in the June Notice.

NAV CANADA has not increased its overall rate levels in approximately nine years. The Company last modified its service charges on September 1, 2008 by making permanent a one per cent reduction in charges. At the same time the Company completed the phase-in of the terminal charge revised formula, which resulted in lower charges for large aircraft and modestly higher charges for smaller aircraft, changes which were revenue-neutral for the Company.

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Charges have been held constant since, despite a significant downturn in traffic levels in 2009 and sluggish growth since then, including three years of traffic declines. Overall, charges are only five per cent higher than they were when fully introduced 14 years ago.