NAV CANADA to Raise Service Charges September 1

Air navigation service NAV CANADA has announced it will proceed with its proposal to raise customer service charges effective September 1.

NAV CANADA establishes service charges in accordance with Canada’s Civil Air Navigation Services Commercialization Act and its not-for-profit mandate, ensuring revenues are aligned with the financial requirements of providing safe and efficient air navigation services. 

“As the Corporation continues to recover from the financial impacts of the COVID-19 pandemic, efforts remain focused on reducing debt, rebuilding the Rate Stabilization Account (RSA), and strengthening long-term financial resilience,” NAV Canada said in a statement. 

“While the aviation sector has largely recovered from the pandemic, ongoing economic, operational, and geopolitical uncertainties continue to affect traffic demand and costs. In response, NAV CANADA has implemented cost-containment measures while continuing to invest in safety, service delivery, training, and modernization.” 

The revised service charges have two components: (i) a Base Rate adjustment to recover NAV CANADA’s anticipated fiscal 2027 costs, by service; and (ii) an average Temporary Rate decrease to reduce the amount of pandemic-related RSA shortfall to be recovered in fiscal 2027. 

The overall average net increase in service charges of 1.92% includes an average Base Rate increase of 2.04% and an average Temporary Rate decrease of 2.25% compared to existing rates. 

“Together, these adjustments support NAV CANADA’s continued investment in safety, service delivery and modernization while enabling the measured rebuilding of the RSA over time, contributing to the Corporation’s long-term financial sustainability and more predictable service charges.”