Higher Nav Canada User Fees Coming September 1

 - August 24, 2020, 9:26 AM

Nav Canada is hiking user service charges by an average of 29.5 percent due to lower air traffic volume and a resulting decrease in collected fees stemming from the Covid-19 pandemic. The revised rates, which take effect September 1, also include provisions to ease the cash flow impact of the increase on its customers through payment deferral mechanisms.

Specifically, Nav Canada increased terminal fees by 30.8 percent, en route by 26.4 percent, North Atlantic Track by 48.5 percent, and international communications by 41 percent. The increase is required to allow the private ATC provider to achieve a minimum level of revenue in its Fiscal Year 2021, “thereby facilitating the additional borrowings which are needed to provide Nav Canada with sufficient liquidity to weather the Covid-19 pandemic.”

The increased rates were proposed in May. “Throughout the consultation period the company explored all options, including federal government assistance, with the objective of eliminating the need for the increase,” Nav Canada said. “Despite these efforts, no alternative was found, and the company has proceeded with [the proposed rates] after full consideration of the input received during the consultation period.”