Nav Canada’s rate change upheld by Canadian Transportation Agency

Nav Canada said it is pleased with the decision issued by the Canadian Transportation Agency upholding the company’s revised service charges.

This is the first time Nav Canada’s service charge rates have increased since 2004. Eric Dumigan Photo
Advertisement

The CTA’s decision relates to an appeal by the International Air Transport Association (IATA), filed​​​​​ in September 2019.

As a not for profit, Nav Canada’s rates may not be set at a level exceeding what is required to meet the cost of providing civil air navigation services. Any profits Nav Canada generates are re-invested in the air navigation service to ensure that the company continues to provide Canada with the safest, most-efficient and cost-effective air navigation services.

Nav Canada is a private, not-for-profit company, whose revenue comes primarily from its customers — airlines, air cargo operators, air charter operators, air taxis, helicopter operators, and business and general aviation. Nav Canada receives no government funding. Revenues are generated through customer service charges, technology sales, and other related commercial activities.

Nav Canada’s service charges had not increased since 2004. Over the last 15 years, the company has in fact reduced its rates four times.

Advertisement

The new customer service charges were implemented in two phases:

  • Effective Sept. 1, 2019, Nav Canada began recovering the cost of domestic space-based surveillance data services, with an average increase of 0.8 per cent on overall rate levels.
  • Effective Jan. 1, 2020, the North Atlantic Enroute charge increased to $155.03 per flight to recover the cost of providing space-based ADS-B surveillance within the North Atlantic oceanic airspace.

Space-based Automatic Dependent Surveillance-Broadcast (ADS-B) provides a full and accurate real time view of every equipped aircraft, using satellite information to extend coverage globally.

Leave a Reply

Your email address will not be published. Required fields are marked *