OTTAWA, Jan. 10 /CNW Telbec/ - NAV CANADA today released its financial
results for the three months ended November 30, 2007. Growth in air traffic
and favourable cost variances from plan contributed to an improvement in the
Company's financial position during the first quarter of its 2008 fiscal year.
"The first quarter was positive for our customers as they continued to
benefit from the service charge reduction," said John Crichton, NAV CANADA
President & CEO.
NAV CANADA implemented a service charge reduction of 4 per cent on
August 1, 2007 with 1 per cent of it temporary until August 31, 2008. The
reduction will save customers approximately $ 50 million in fiscal 2008. The
Company expects to achieve breakeven financial results in 2008, consistent
with our mandate.
The Company's revenues before rate stabilization and the approved
transfer from the rate reduction obligation for the first quarter of fiscal
2008 were $ 300 million, compared to $ 299 million for the comparable period
in previous year. The higher revenues arose primarily from a 5.3 per cent
year-over-year increase in air traffic volumes, partially offset by the
4 per cent reduction in customer service charges.
Operating expenses before rate stabilization for the quarter were
$ 234 million which was $ 2 million higher than last year. This increase was
primarily due to higher compensation levels partially offset by lower pension
During the first quarter, other expenses totalling $ 61 million were
$ 6 million higher than in the prior year. This was primarily due to lower
investment income and the depreciation of new capital assets.
The foregoing resulted in an excess of revenues over expenses of
$ 5 million in the first quarter of fiscal 2008. While NAV CANADA intends to
break even on an annual basis, quarterly results may indicate an imbalance
between revenues and expenses due to seasonal fluctuations in air traffic and
other factors. In order to achieve planned results, the Company recorded a
$ 5 million improvement in the rate stabilization account and a $ 3 million
transfer from the rate reduction obligation. During the first quarter of
fiscal 2008, the Company's rate stabilization account increased to
$ 66 million.
The Company's financial statements and Management's Discussion and
Analysis for the three months ended November 30, 2007 are available on NAV
CANADA's website at: www.navcanada.ca.
NAV CANADA, the country's civil air navigation services provider, is a
private sector, non-share capital corporation financed through publicly-traded
debt. With operations coast to coast, NAV CANADA provides air traffic control,
flight information, weather briefings, aeronautical information services,
airport advisory services and electronic aids to navigation.
This press release contains certain forward-looking statements that are
subject to important risks and uncertainties. Actual results may differ
materially from the results indicated in these statements for a number of
reasons. NAV CANADA disclaims any intention to update any forward-looking
For further information:
For further information: John Morris, Director, Communications, (613)
563-7032; Ron Singer, Manager, Media Relations, (613) 563-7303; Media
Information Line, 1-888-562-8226; www.navcanada.ca