So, it appears that the Canadian people are guaranteeing the revenue
of a not-for-profit private corporation. The GOP wants to privatize
US ATC, and has floated numerous Congressional bills to effect
directly levying the cost of ATC on Pilots, Airlines, and the flying
public. As if the cost of private flight isn't beyond the means of
most today, when NextGen is fully implemented, you will be paying for
it. You've been warned.
----------------------------
https://www.avweb.com/aviation-news/nav-canada-raising-fees-29-5-percent/
Nav Canada Raising Fees 29.5 Percent
Russ NilesMay 31, 20200
The coronavirus pandemic will hit operators who fly in Canada squarely
on the bottom line as Nav Canada, the not-for-profit private
corporation that runs air traffic services, hikes fees
https://www.navcanada.ca/EN/Pages/NR-27-2020.aspx for commercial
operations an average of 29.5 percent. Nav Canada isn’t allowed to
make money but it also has to earn enough to cover costs and with the
drastic drop in traffic, the user fees it collects have slowed to a
trickle. Since most of its costs are fixed and not influenced
significantly by traffic volume, it’s facing a huge shortfall at the
current rates, which were based on the record traffic levels recorded
in 2018 and early 2019.
Most of the increases for various ATC services will come into effect
Sept. 1, assuming the proposal survives the 60-day comment period.
They will not apparently apply immediately to the flat rate of $68.40
a year paid by recreational and aerial spraying aircraft. Nav Canada
says it’s done everything it can to save money but it’s projecting
that it will be $242 million CAD short of the minimum revenue level it
needs just to borrow enough money to keep operating. “Nav Canada is
proposing this rate action only after having actively pursued all
available alternatives, including government assistance,” said Neil
Wilson, president of the not-for-profit corporation. “All available alternatives, including further government assistance will continue to
be explored and utilized in order to minimize or avoid the proposed
rate increase.”
AOPA says the situation in Canada is a teaching moment for proponents
of a privatized air traffic services system in the U.S., an issue that
came up again two years ago. “This fee increase proposal in Canada
reminds us what might have happened to the ATC system here in the
United States,” said Jim Coon, AOPA senior vice president of
government affairs. “Fortunately, members of Congress came to
understand that moving our ATC system out of the federal government
was simply a power grab that would have done nothing to lower prices,
reduce delays, or speed up the modernization program, and AOPA members
have realized this and responded to ensure we don’t go down that
path.”
----------------------------------------
https://www.navcanada.ca/EN/Pages/NR-27-2020.aspx
NR-27-2020
NAV CANADA releases proposal to change service charges
?May 20, 2020 – Ottawa - NAV CANADA today released, for consultation,
a proposal to revise customer service charges, effective September 1,
2020. The proposal calls for increased service charges averaging
29.5% in base rates and includes provisions to ease the cash flow
impact of the increase on its customers through payment deferral
mechanisms.
The impact of the COVID-19 pandemic on the aviation industry has
significantly reduced NAV CANADA’s liquidity. Revenues and cash
inflows have been substantially reduced as compared to its approved
budget. All operating and capital spending has been reviewed and
actions have been taken to reduce spending and cash outflows while at
the same time ensuring the continued fulfillment of NAV CANADA’s
statutory mandate to safely operate and maintain the Canadian air
navigation system as an essential service. NAV CANADA will continue
to pursue all opportunities for additional operating and capital
spending reductions.
NAV CANADA acknowledges that this increase comes at a time when its
customers are also in exceptionally difficult circumstances as a
result of the COVID-19 pandemic and is therefore proposing to defer
the fiscal 2021 cash impact of the increases to its customers, over a
five-year period.
“NAV CANADA is proposing this rate action only after having actively
pursued all available alternatives, including government assistance”,
said Neil Wilson, President and CEO. “All available alternatives,
including further government assistance will continue to be explored
and utilized in order to minimize or avoid the proposed rate
increase.”
As the majority of its costs are fixed, NAV CANADA cannot fully offset significantly lower revenues and cash inflows due to recent decreases
in air traffic volume during COVID-19. The consequent reduction of
available liquidity has prompted NAV CANADA to seek additional debt
financing. In order to meet the additional indebtedness provisions of
its existing debenture agreements however, it must achieve a minimum
level of revenue in its fiscal 2021 year. The proposed service charge increases are required for NAV CANADA to meet that minimum revenue
level.
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 NAV CANADA’s management and Board of
Directors, prior to a final decision being made on the proposal.
Details of NAV CANADA's proposed revised service charges are available
here:
View: - Notice of Revised Service Charges [PDF]
https://www.navcanada.ca/EN/media/Documents/Notice%2022%20FINAL%20En%20Posted.pdf
View: - Details and Principles Regarding Proposed RevisedService
Charges [PDF]??
https://www.navcanada.ca/EN/media/Documents/Details%2022%20FINAL%20En%20Posted.pdf
Caution Concerning Forward-looking Information
This news release contains “forward-looking statements” within the
meaning applicable to Canadian securities legislation. Generally,
these forward-looking statements can be identified by the use of forward-looking terminology such as “proposes”, “plans”,
“anticipated”, “expects” or “does not expect”, “is expected”,
“budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates” or “does not anticipate”, or “believes”, or variations
of such words and phrases or state that certain actions, events or
results “may”, “could”, “would”, “might” or “will be taken”, “occur”
or “be achieved”. NAV CANADA is subject to significant risks and
uncertainties which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements contained in this release. NAV CANADA
cannot assure that actual results will be consistent with these
forward-looking statements and NAV CANADA assumes no obligation to
update or revise the forward-looking statements contained in this
release to reflect actual events or new circumstances, except as
required by applicable securities legislation.
About NAV CANADA
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.
For further information, please contact:
Brian Boudreau
Manager, Media Relations
613-563-7303
Media Information Line: 1-888-562-8226?
------------------------------------
You will see in the document at this link
https://www.navcanada.ca/EN/media/Documents/Notice%2022%20FINAL%20En%20Posted.pdf
the current and proposed fees flights in/over Canada must pay a
private company for ATC services.
---------------------------
https://www.navcanada.ca/EN/media/Documents/Details%2022%20FINAL%20En%20Posted.pdf
NAV CANADA is a non-share capital, private sector corporation which is responsible for the provision of civil air navigation facilities and
services for aircraft in Canadian airspace or any other airspace for
which Canada is responsible for providing air navigation services.
[...]
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