Nav Canada to implement proposed rate reduction

Nav Canada has announced it will proceed with its proposal to decrease existing base rates by an average of 0.4 per cent.

Nav Canada has not increased its service charges in the last 13 years. In fact, as of Sept. 1, 2017, charges were three per cent lower than when they were first introduced in 1999. Photo courtesy of Nav Canada
Nav Canada has not increased its service charges in the last 13 years. In fact, as of Sept. 1, 2017, charges were three per cent lower than when they were first introduced in 1999. Photo courtesy of Nav Canada
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This effectively continues the one-year temporary rate reduction that was implemented on Sept. 1, 2017. On average, customers will pay the same rates in fiscal 2019 as they did in fiscal 2018.

The proposal to revise charges was released on May 28, 2018 and was subject to a mandatory consultation period of at least 60 days.

Traffic has grown at a rate greater than forecast in fiscal 2018. Projections for continued growth into next year has allowed the company to reduce its rates as of Sept. 1, 2018, when last year’s 0.4 per cent temporary rate reduction was set to expire.

The revisions to base rates will vary by service, and are intended to ensure that rates are aligned with anticipated service costs and air traffic and are consistent with the charging principles established in the Civil Air Navigation Services Commercialization Act.

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The 0.4 per cent average reduction to base rates will become effective on Sept. 1, 2018; 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, 2019 consistent with the revision cycle for these charges.

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.

 

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