Nav Canada has decided to proceed with a planned
6.9 per cent average increase to its air navigation service charges, following
the mandatory 60-day consultation period.
The increase is required to deal with a revenue shortfall due to the continuing
downturn in air traffic - and comes despite Nav Canada already cutting about $75
million in operating costs over the last two years.
The new charges went into effect August 1, 2003, with annual and quarterly
charges to be implemented on March 1, 2004.
Fees are now $64 annually for aircraft weighing 2.0 metric tonnes and less.
Nav Canada did not indicate whether they will also charge an additional $1 to
top up the rate stabilization account.
If the additional $1 is charged, aircraft owners will be paying a total of $65 a
year, making the total fee increase 8.4 per cent.
Nav Canada intends the fee increase to be sufficient to achieve break even
results in 2004
Further details of Nav Canada’s new service charges are available on the
company’s Web site: www.navcanada.ca.