Story ID: 
Nav Canada Proposes User Fee Increase
By: Gordon Gilbert
Caption: Nav Canada has released a proposal to revise customer service charges to recover the costs of ADS-B surveillance data services.
Word Count: 307
Nav Canada has released a proposal to revise customer service charges to recover the costs of ADS-B surveillance data services. Proposed base rate service charge revisions, effective September 1, will average a 0.8 percent increase. Charges related to ADS-B surveillance are proposed to begin Jan. 1, 2020. Three options are suggested: a flat service charge per flight of $155.03, by aircraft weight, and by distance flown.

Under the weight option, the increased fee would be based on the average of the maximum permissible takeoff weight using all of the operator’s aircraft of the same type. Under the distance option, flights that enter or exit Canadian-controlled oceanic airspace will be calculated as the great circle distance between the point of entry and point of exit of the flight in that airspace. For flights that enter and exit the airspace more than once, distance will be calculated as the sum of the great circle distances of each leg of the flight in that airspace.

In addition to the proposed revisions to customer service charge rates, Nav Canada is proposing that its rate stabilization account (RSA) be managed on an annual basis in conjunction with the rate setting and budgeting process. This process would replace the formula-based RSA target balance of 7.5 percent of annual operating expenses, allowing greater application of forecasting and management analysis.

Its customer service charges “remain among the lowest…compared to other air navigation service providers,” the company said. “The proposed rate changes would bring service charges on Jan. 1, 2020 to less than 1 percent higher than they were more than two decades ago when fully introduced in 1999—nearly 50 percentage points less than the cumulative growth in inflation.”

Input received during the consultation period will be considered by Nav Canada’s board of directors before deciding on the proposals. Comments are due August 6.