OTTAWA, Oct. 23 /CNW Telbec/ - NAV CANADA today released its financial
results for the year ended August 31, 2008. The results showed continued
growth in air traffic and revenues in fiscal 2008.
The Company's revenues before rate stabilization and the approved
transfer from the rate reduction obligation for fiscal 2008 were
$ 1,228 million, compared to $ 1,205 million for the previous year. The higher
revenues arose primarily from a 5.5 per cent year-over-year increase in air
traffic volumes, partially offset by the 4 per cent reduction in customer
service charges that was implemented on August 1, 2007.
"This rate reduction has been retained for the current fiscal year,
providing additional customer savings based on the efforts of everyone at NAV
CANADA to continue providing safe and efficient air navigation services," said
John Crichton, President & CEO. "While current economic conditions are a
concern for everyone, we will do our utmost in fiscal 2009 to continue
delivering the kinds of customer benefits that underpin these financial
results." Operating expenses before rate stabilization for the year were
$ 961 million and were comparable to fiscal 2007.
Interest, depreciation and amortization expense before rate stabilization
totalling $ 254 million were $ 2 million higher than in the previous year.
This was primarily due to higher depreciation of capital assets offset by
lower interest expense.
During fiscal 2008, the Company further reduced by $ 88 million the fair
value of its investments in asset-backed commercial paper in addition to the
$ 34 million reduction recorded in the previous year. This was partially
offset by $ 6 million of interest income received compared to $ 22 million of
interest income in the previous year.
The foregoing resulted in an excess of expenses over revenues and other
income before rate stabilization of $ 69 million in fiscal 2008. In order to
achieve breakeven results, the Company recorded a $ 57 million decrease in the
rate stabilization account due to variances from planned results and reduced
the rate reduction obligation by $ 12 million. As a result, the Company's rate
stabilization account decreased to $ 4 million at year end.
The Company's Financial Statements, Annual Information Form and
Management's Discussion and Analysis for the year ended August 31, 2008 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; Nadège Adam,
Advisor, Media Relations, (613) 563-5972, Media Information Line: