NAV CANADA has embarked on a cost cutting
adjustment of services and facilities, referred to as a Level of Service (LOS)
Review, throughout Canada as it struggles with short falls in revenue in recent
years.
The LOS Review started as a cost-cutting exercise. Subsequently, the thrust of
the project changed to one of a contribution to the bottom line if possible and
an adjustment to service levels to reflect changes in use patterns.
While adjustments should be made from time to time, COPA is concerned that the
cuts do not go far enough in addressing the losses that the company is
experiencing.
The meager annual savings of $6 million and the considerable upfront investment
in a few new flight service stations and other additions will result in little
or no appreciable savings to the company, in our opinion.
We can only conclude that increased fees are inevitable unless either traffic
picks up considerably, money is injected from another source, or further and
more extensive cuts are made.
In a letter to the company COPA President Kevin Psutka highlighted these
concerns.
“Regarding the option of more extensive cuts, our (COPA) participation in
consultations so far has made it clear that massive cuts are not advocated by
anyone. Furthermore, even the relatively small cuts that are planned are being
resisted vigorously and for valid reasons,” Psutka said.
“The majority of the planned cuts involve the facilities used by general
aviation. In particular, smaller airports will be hit the hardest when the
effort will involve shutting down facilities that are under-utilized, but
nevertheless needed for important transportation functions such as medevac
flights.”
Psutka told the company that in order to maintain an acceptable level of service
for these airports, the various levels of government have a role to play and
that the National Airports Policy and the Commercialization Act must be revised
to reflect this government role.
The user pay concept has proven not to work at these low use airports. COPA
believes that the National Airports Policy should be revised to provide more
government funding to smaller airports as part of the national transportation
infrastructure, and funding should not be limited to airports with airline
traffic, as it is now under the Airport Capitalization Assistance Program.
In addition, the Commercialization Act should be revised to address the need to
provide service not only to northern and remote airports, but also to smaller,
southern airports.
The key point made by Psutka is that “funding for the smaller airports should
not come entirely from the ANS users. It remains COPA’s long-standing position
that we are contributing significantly via the fuel excise taxes.”
Instead, funding should come from the government, either directly from the
federal government through an expanded Airport Capital Assistance Program, or
through transfer payments to the provinces or other agreements down to the local
government level.
Psutka pointed out that local governments spend money on roads that connect to
the provincial highways and this should be no different than spending money on
an airport and its facilities including approach aids, control tower etc. There
is a role for the taxpayer in support of this national infrastructure.
The LOS Review has made it more apparent that a combination of the National
Airports Policy and the Commercialization of the ANS has abandoned most of the
smaller facilities in Canada. Many communities are struggling with the cost
burden and unfortunately coming to the conclusion that airports cannot be
self-sufficient.
However, the communities still view them as something that must be self-funding,
unlike other transportation modes. COPA realizes that this is a dead-end route
because the users will never be able to fully fund them.
Unless the government steps in, many of these airports will fail and the quality
of life in these communities will suffer.
As the LOS Review develops into detailed consultations at the local level,
including airports near you, COPA members are urged to get involved and express
their views about how the cuts effect them.
Members are also urged to visit the NAV CANADA website for more details
regarding the proposed LOS changes. As well, a recent presentation made by NAV
CANADA can be found on our website at
www.copanational.org