Nav Canada is reducing user fees–or service charges–by 2 percent beginning next month. Nav Canada’s charter requires that the organization’s revenue essentially balance its operating costs, except under special circumstances.
The 2-percent reduction represents the termination of a special-circumstances charge that it insti- tuted in August 2003 to fatten its rate stabilization (“rainy day”) account to $50 million, after it dropped to negative $116 million. The 2-percent charge had, by May, contributed to an account balance of $73 million. Nav Canada increased its rate stabilization account target to $75 million in 2003, but the agency believes it can accomplish this goal without additional charges.
With the reduction, service charges will be 2 percent less than the former air transportation taxes they replaced.