NAV CANADA releases service charge proposal

New space-based ADS-B service being phased in across Canadian and North Atlantic airspace

OTTAWA, June 04, 2019 (GLOBE NEWSWIRE) -- NAV CANADA today released for consultation a proposal to revise customer service charges to recover the applicable costs of space-based ADS-B surveillance data services in both domestic Enroute and North Atlantic oceanic airspace.

The proposed changes would be implemented in two phases, taking effect on September 1, 2019 and January 1, 2020 respectively.  

“We are pleased to be a world leader in using space-based ADS-B surveillance in our air traffic control operations in domestic Enroute airspace and in the North Atlantic oceanic airspace. Since March 2019, our customers have had the opportunity to trial the new system and will so do for a period of time without cost, enabling them to best understand how they can realize its benefits,” said Neil Wilson, President and CEO. “This technology significantly enhances safety and aircraft tracking over our current airspace, and ADS-B equipped aircraft have benefited from operational advantages both in safety and efficiency since its initial implementation in March 2019.”

Overall, proposed customer service charge rate revisions, effective September 1, 2019, will represent an average 0.8% increase in base rates, which recovers the cost of domestic space-based surveillance data services.

Charges related to space-based ADS-B surveillance within the North Atlantic oceanic airspace will begin January 1, 2020 and will be recovered through the existing North Atlantic Enroute (NAT) service charge. Three options for recovering the fee are suggested; a flat service charge per flight structure of $155.03, and two others which include aircraft weight and distance flown as potential components.

NAV CANADA customer service charges remain among the lowest in the industry compared to other air navigation service providers. The proposed rate changes would bring service charges on January 1, 2020 to less than 1 per cent higher than they were more than two decades ago when fully introduced in 1999 – 46 percentage points less than the cumulative growth in inflation.

In addition to the proposed revisions to customer service charge rates, the Company is proposing that its Rate Stabilization Account (RSA) be managed on an annual basis in conjunction with the rate setting and budgeting process. This process would replace the formula-based RSA target balance of 7.5 per cent of annual operating expenses, allowing greater application of forecasting and management analysis.

The proposal is now subject to the mandatory 60-day consultation period required by legislation. Input received during the consultation period will be considered by the Company’s Board of Directors prior to deciding on the proposals.

Details of NAV CANADA's proposed revised service charges are available here:

View: - Notice of Revised Service Charges [PDF]

View: - Details and Principles Regarding Proposed Revised Service Charges [PDF]

NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.

The Company is internationally recognized for its safety record, and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

NAV CANADA is a partner of Aireon LLC, an international joint venture providing global air traffic surveillance through a space based Automatic Dependent Surveillance-Broadcast (ADS-B) network.

For further information, please contact:

Ron Singer
National Manager, Media Relations
(613) 563-7303

Media Information Line: 1-888-562-8226

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