Nav Canada to slash airline fees by 8%

Published on : Tuesday, July 19, 2016

Nav CanadaFrom September onwards, Nav Canada, the air traffic control company that charges airlines for flying through Canadian air space, landing and taking off would slash the airline fees by almost 8%. This move would help airlines save nearly $100 million in the next year.

 

On Monday, Nav Canada said that it would reduce air charges by almost 7.6% from 1st September, 2016. Nav Canada is a non-profit organization with the responsibility of monitoring the movements of as many as 12 million planes that land in or take off from Canada every year. It was founded in the year 1996.

 

The fees charged by the organization is dependent on the distance travelled by the airliner as well as the aircraft’s weight.

 

The fees received from the aircraft is utilized to make payments for the air traffic control, the in-flight communications between the ground and cockpit and also the weather briefings.

 

Since it is a non-profit organization, Nav Canada is only permitted to charge an amount that is just enough to ensure the effective maintenance of the airlines. Since the airlines have been really efficient in paying the charges, this company has minimized the rates.

 

Neil Wilson, CEO, Nav Canada said that strategic investments, cost controls and strong traffic growth enabled it to reduce the air charges. This is the third time that Nav Canada has cut down on its air charges since the year 2006.

 

Such changes would make it possible for Nav Canada to meet its cost recovery mandate more easily.

 

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