Announcement

Collapse
No announcement yet.

*NAV CANADA*

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • *NAV CANADA*

    OTTAWA - Nav Canada, the not-for-profit company that runs the navigation system at Canada's airports, says it will have to raise fees this year to cover a deficit that is expected to hit $157 million, up from last fall's prediction of $84 million.

    "Customer service charges will be increased effective Aug. 1, 2003," it said Monday.

    The amount was not specified, but the increase is sure to worry the aviation industry, which has been lobbying the federal government to cut charges to stimulate travel and help ailing airlines.

    Air Canada went into bankruptcy protection April 1, and a Parliamentary committee last week recommended a $650 million cut in aviation taxes and fees.

    While not disclosing the size of the price rise it needs, Nav Canada did say it wants to break even in fiscal 2004, ending Aug. 31, 2004, and recover losses it said will hit $176 million by August over the next five years,.

    It said it will have a detailed fee proposal ready for its users, the airlines, by May 15.

    It also said it plans to cut $34 million in costs this year. It's seeking "wage restraints" from unionized employees and has frozen salaries for non-unionized employees until Aug. 31, 2004.

    Nav Canada reported a loss of $24 million on revenue of $207 million for the three months ended Feb. 28. But that was after it used its rate-stabilization account, which cut the quarterly loss by $31 million from the $55 million it would otherwise have been.

    The account works by putting off costs, but those charges do have to be paid eventually.

    Part of Nav Canada's problem was caused by Air Canada, which owes the agency $44 million. About $23 million of that was owed before the end of the quarter, on Feb. 28, and has been written off as a bad debt, adding to the loss in the quarter.

    Nav Canada said it is assessing the other $21 million, the charges Air Canada ran up from Feb. 28 until April 1, when the airline sought bankruptcy protection.

    That may also have to be written off.

    Air Canada represents 28 per cent of Nav Canada's revenue.
    My pics:
    http://www.jetphotos.net/showphotos.php?userid=1067

  • #2
    The privatization of ATC in Canada has been a mixed blessing-the prices charged to the flying consumer just keep going up and up, which is one of the reasons there is such a backlash against short haul flights in particular in this country. The train between here and Toronto keeps looking better all the time!
    ________
    Brunette schoolgirl

    Comment

    Working...
    X