Nav Canada Rate Increase Upheld by National Arbitrator

 - February 18, 2020, 4:14 PM

Higher fees that recently went into effect for users of ATC services in Canada have been upheld by the Canadian Transportation Agency (CTA), the country’s independent organization that is responsible for resolving complaints about transportation services, fares, rates, and charges. Nav Canada, the private, not-for-profit company that operates the nation’s ATC system, implemented increased domestic and international user fees on September 1 and January 1, respectively.

The CTA’s decision relates to an appeal by the International Air Transport Association (IATA), filed just days after the fees went into effect. Nav Canada and IATA agreed to mediation, which commenced in October and ended with the arbitrator’s decision in late January. During mediation, the revised rates remained in effect.

On September 1, Nav Canada raised the cost of domestic ATC by an average of 0.8 percent on overall rate levels. On January 1, the North Atlantic en route charge increased to a flat rate of $155.03 per flight. Nav Canada said the increases are necessary to recover the cost of providing ADS-B surveillance. Until the rates increased, ADS-B services had been available since last March at no cost during a trial period. Nav Canada also pointed out that its service charges had not increased since 2004.