|Type||Non-share capital corporation/ Statutory|
|Headquarters||Ottawa, Ontario, Canada|
|Products||Civil air navigation|
Nav Canada is a privately run, not-for-profit corporation that owns and operates Canada's civil air navigation system (ANS). It was established in accordance with the Civil Air Navigation Services Commercialization Act (ANS Act).
The company employs approximately 2,000 air traffic controllers (ATCs), 800 flight service specialists (FSSs) and 700 technologists. It has been responsible for the safe, orderly and expeditious flow of air traffic in Canadian airspace since November 1, 1996 when the government transferred the ANS from Transport Canada to Nav Canada. As part of the transfer, or privatization, Nav Canada paid the government CA$1.5 billion.
Nav Canada manages 12 million aircraft movements a year for 40,000 customers in over 18 million square kilometres, making it the world’s second-largest ANSP by traffic volume.
Nav Canada, which operates independently of any government funding, is headquartered in Ottawa, Ontario. It is only allowed to be funded by publicly traded debt and service charges to aircraft operators.
Nav Canada's operations consist of various sites across the country. These include:
- About 1,400 ground-based navigation aids
- 56 flight service stations
- 8 flight information centres, one each in:
- Kamloops - most of British Columbia
- Edmonton - all of Alberta and northeastern BC
- Winnipeg - northwestern Ontario, all of Manitoba and Saskatchewan
- London - most of Ontario
- North Bay - all of Nunavut and Northwest Territories, most of the Arctic waters
- Quebec City - all of Quebec, south western Labrador, tip of eastern Ontario
- Halifax - all of New Brunswick, Nova Scotia, Prince Edward Island, and most of Newfoundland and Labrador
- Whitehorse - northwestern British Columbia and all of Yukon
- 42 control towers
- 46 radar sites and 5 automatic dependent surveillance-broadcast (ADS-B) ground sites
- 7 Area Control Centres, one each in:
- Vancouver (CZVR) - Surrey, BC
- Edmonton (CZEG) - Edmonton International Airport
- Winnipeg (CZWG) - Winnipeg International Airport
- Toronto Centre (CZYZ) - Toronto Pearson International Airport
- Montreal Centre (CZUL) - Montreal International Airport
- Moncton (CZQM) - Moncton International Airport
- Gander (CZQX) - Gander International Airport
- North Atlantic Oceanic control centre: Gander Control
NAV Canada has three facilities not located at an airport:
- National Operations Centre: Ottawa (77 Metcalfe Street)
- Technical Systems Centre: Ottawa (280 Hunt Club Road)
- NAV Canada Training and Conference Centre (formerly the Nav Canada Training Institute (NCTI)) - 1950 Montreal Road in Cornwall, Ontario
As a non-share capital corporation, Nav Canada has no shareholders. The company is governed by a 15 member board of directors representing the four stakeholder groups that founded Nav Canada. The four stakeholders appoint 10 members as follows:
|General and business aviation||1|
|Bargaining agents (unions)||2|
These 10 directors then elect four independent directors, with no ties to the stakeholder groups. Those 14 directors then appoint the president and chief executive officer who becomes the 15th board member.
This structure ensures that the interests of individual stakeholders do not predominate and no member group could exert undue influence over the remainder of the board. To further ensure that the interests of Nav Canada are served, these board members cannot be active employees or members of airlines, unions, or government.
Rate Stabilization Fund
Early in its history the company established a rate stabilization fund, consisting of retained assets. This fund was used to provide funding for the company during periods of lower revenues caused by seasonal and other fluctuations of air traffic and hence the customer fees that primarily fund the company. The fund was generally kept at $80–100 million, except during the early 2000s recession when it was drawn down to zero and later replenished. In 2008 the company announced that the fund had been reduced to $4M "due to variances from planned results".
At the end of the company's third fiscal quarter, 31 May 2009 the rate stabilization fund stood with a recoverable asset balance of $27 M.
In an attempt to provide stable income for the company Nav Canada, invested heavily in ABCP. On 13 August 2007 the company announced that certain third-party sponsors of these instruments had become "illiquid" and on 16 August 2007 the company joined with other companies in the Montreal Accord, forming a Pan Canadian Investors Committee, to try to solve the problem. On 12 January 2009 final Ontario Superior Court of Justice approval was granted to restructure the debt as new notes that will mature in several years.
As a result of these proceedings Nav Canada wrote off a total of $164M in ABCP losses by January 2009. In July 2009 the company indicated that $66M worth of "asset-backed commercial paper investments should be recoverable over the time that the Company continues to hold them."
During the recession, commercial air traffic levels dropped as airlines reduced the number of flights scheduled in response to lower customer demand. The company reported that "Traffic during the third quarter (2009) was 8.1 per cent lower than in the third quarter of 2008." This resulted in lower revenues for Nav Canada, with third quarter revenues reported as $284M, compared to $305M in the same period in 2008. Operating expenses were $241M, $9M lower than the same period in 2008 as the company reduced overtime and employee numbers to contain costs, despite large settlements in union contracts. The company expenses were $2M higher than revenues in the third quarter of 2009, but were offset by use of the rate stabilization account.
In dealing with the recession as well as the investment losses, CEO John Crichton said in July 2009:
|“||Working with employees and all our stakeholders, the Company has been able to absorb the impact of declining air traffic and revenues without having to increase our service charges. We announced in June that no rate increase is planned at this time.||”|
Results for the company's fiscal year 2009, which ended on 31 August, showed that air traffic was down. The company reported: "Traffic for the complete fiscal year 2009 was 6.0 per cent lower than 2008, or 5.8 per cent on a normalized basis given that February 2009 had one less day than February 2008 due to the leap year".
- Transport Canada (October 1996). "Government transfers air navigation system to Nav Canada". Retrieved 21 Apr 2011.
- Nav Canada (undated). "Meet NAV CANADA". Retrieved 08 November 2013.
- "Contact Us." Nav Canada. Retrieved on December 31, 2010. "Address - Head Office: 77 Metcalfe Street Ottawa, ON K1P 5L6" - Address in French: "Adresse du siège social: 77, rue Metcalfe Ottawa (Ontario) K1P 5L6."
- Nav Canada (October 2013). "Facility Map". Retrieved 2013-11-08.
- Sheridan, John (2009-01-01). "Former CBAA executive to join Nav Canada board". Aviation International News. Retrieved 2009-07-22.
- Morris, John (July 2009). "Nav Canada announces third quarter financial results". Retrieved 2009-07-21.
- Canadian Broadcasting Corporation (January 2009). "Asset-backed commercial paper's long road back". CBC News. Archived from the original on 6 Januart 2010. Retrieved 2009-07-21.
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