Nav Canada, the private company that runs Canadas airspace system, is making money, and since it isnt supposed to its giving the profits back in the form of rate reductions. Effective Sept. 1, rates charged for its services will be cut by 3 percent, which is in addition to the 1.8 percent cut made last Sept. 1. “Increased traffic growth together with the company’s continued focus on cost control, provide the opportunity to offer lower service charges to our customers while meeting our essential safety and service obligations,” CEO John Crichton said in a news release. Nav Canada took over air traffic services 10 years ago and rates have fluctuated according to traffic levels. They took a significant jump in the doldrums following 9/11, but traffic is up about 5 percent this year and that makes the whole operation more efficient. The company has also built an $86 million war chest in case theres another unexpected downturn.
Nav Canada Cuts User-Fee Rates
Key Takeaways:
- Nav Canada, the private air traffic control company, is reducing its service rates by 3% effective September 1st.
- This reduction follows a previous 1.8% cut in September 2007 and is attributed to increased traffic and cost control.
- The increased air traffic volume leads to greater efficiency and profitability for Nav Canada.
- Nav Canada has also built an $86 million reserve fund to mitigate potential future downturns.
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