NAV CANADA mulls extending lower charges, offers airlines free use of ADS-B during trials​

NAV CANADA has unveiled a rate revision proposal that would decrease rates by an average of 0.4 per cent, effectively continuing the one-year temporary rate reduction that was implemented in September.
“On average, our customers will pay about the same rates in fiscal 2019 as they did in fiscal 2018,” the air navigation service provider said, adding that traffic over the past year has grown at a rate greater than forecast.
The strong traffic results in the current fiscal year coupled with traffic growth projections for fiscal 2019 has in effect, enabled the provider 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.
“While we are keeping our rates low, NAV CANADA will be enhancing air traffic services,” said Neil Wilson, president and chief executive. “In fiscal 2019, the company will begin trialling 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 company will not seek to recover the costs incurred for its use of space-based ADS-B surveillance data. There will be no corresponding adjustment to our service charges,” said Wilson.
​​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 included in Canada’s Civil Air Navigation Services Commercialisation Act.
“This is good news for our customers” said Wilson. “Service charges were set to rise on September 1 when the existing temporary one year rate reduction expired. The reduction in base rates will allow the temporary rate reduction to continue.”
These proposals are subject to the mandatory notice and consultation period required by legislation. Input received during the consultation period will then be reviewed by the company’s Board of Directors.
For more details of NAV CANADA’s proposed revised service charges:
View: Notice of Revised Service Charges
​View: Details and Principles Regarding Proposed Revised Service Charges​​