NAV CANADA announces decision on rate revisions

    OTTAWA, Aug. 19 /CNW Telbec/ - NAV CANADA today announced its decision to
implement the rate revisions proposed in the Notice of Revised Service Charges
released for consultation in June 2008.
    The Company will maintain a one per cent reduction in its service charges
that was implemented on a temporary basis on August 1, 2007 and set to expire
on August 31, 2008.
    "This rate reduction stands to save our customers an estimated
$13 million per year," said John Crichton, President and CEO. "Our record on
service charges speaks for itself. Overall charges are only five per cent
higher than they were in 1999 when they were fully implemented, which is
17 percentage points below the growth in inflation."
    The Company is also implementing the final phase of adjustments to the
weight exponent for its Terminal Service Charge and the terminal component of
its Daily Charge. This change was originally announced in April 2006,
following extensive consultation on changes to the overall NAV CANADA charging
methodology. This revision will decrease the weight exponent from 0.85 to 0.8,
reducing the charges for larger aircraft and increasing charges for smaller
    The result will be a more equitable balance in the charges between large
and small aircraft, and a charging methodology more in line with international
practice. This change in methodology is revenue-neutral to NAV CANADA.
    "The impact of this adjustment for travellers on commercial air carriers
is minimal," said Crichton. "We charge airlines and aircraft owners directly
but if calculated on a per passenger basis, these adjustments typically
represent an increase of less than 50 cents per flight for smaller aircraft
such as a Dash 8, while reducing the costs by up to 85 cents per passenger per
flight for larger aircraft such as a B 747."
    The decision followed a review of the representations received during the
consultation period. The effective date for the revision in customer service
charges is September 1, 2008. However, for the annual and quarterly charges,
the proposed revision will be effective March 1, 2009, consistent with the
normal date for revisions in these charges.
    Details of NAV CANADA's revised service charges are available on the
Company's web site at

    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.

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:

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