Those hoping for a reprieve from steep increases to Nav Canada fees are likely to be out of luck. The not-for-profit corporation, which depends almost exclusively on fees paid for the air navigation services it provides, reported this week that traffic was down 71.1 percent in June 2020 compared to June 2019, about in line with the previous two months, thanks to the effects of the pandemic. The figure is arrived at through a weighted system that includes the number of flights, aircraft size and distance flown in Canadian airspace. Nav Canada also oversees normally busy polar and North Atlantic routes.
The company announced an average rate increase of 29 percent to make up enough revenue shortfall to allow it to borrow enough money to keep operating.The company’s fiscal year ends Aug. 31 but the Covid carnage is evident in the third quarter results released last month. Third quarter financials showed a decrease in revenue from $351 million to $159 million. “To keep the Company on secure financial footing in these extraordinary times, we implemented incisive cost-cutting measures that will reduce spending now and on a go-forward basis, proposed a significant service charge increase and issued General Obligation Notes in the amount of $850 million.” said Neil Wilson, President and CEO. “We will continue to collaborate with government and industry stakeholders and will take all measures necessary to remain focused on safety and on providing value to our stakeholders.”