June 1, 2018

Nav Canada Maintains Rate Reduction


Nav Canada is proposing to extend the slight rate reduction it set last year in a proposal that would decrease rates by an average of 0.4 per cent. This effectively continues the one-year temporary rate reduction that was implemented on September 1, 2017. Customers will pay about the same rates in fiscal 2019, as they did in fiscal 2018.

“Traffic over the past year has grown at a rate greater than forecast, the company said in a news release. “The strong traffic results in the current fiscal year coupled with traffic growth projections for fiscal 2019 has in effect, enabled the company to cancel the 0.4 per cent rate increase that was set to begin on September 1, 2018, upon the expiration of last year’s temporary reduction.

CEO Neil Wilson said the company will continue to re-invest in new technologies.

“While we are keeping our rates low, Nav Canada will be enhancing air traffic services,” he said. “In fiscal 2019 the company will begin trialing space-based ADS-B surveillance technology in its air traffic control operations for both domestic and North Atlantic oceanic airspace. This will significantly increase safety as it will allow for aircraft tracking in airspace currently without surveillance.

“In addition to enhancing safety, we expect that ADS-B equipped aircraft will be able to obtain operational benefits and fuel savings. Nav Canada will use this trial period to work with its customers to help them obtain the maximum benefits from this enhanced surveillance technology.

During the trial period the space-based services will be available free of charge.