From NAV CANADA

OTTAWA, April 14, 2020 (GLOBE NEWSWIRE) — NAV CANADA today released its financial results for the three and six months ended February 29, 2020.

In the second quarter of fiscal 2020, the Company’s air traffic growth was flat on a year over year basis, as measured in weighted charging units (negative growth of 1.1% excluding the effect of an extra day for the leap year). The Company’s revenue for the second quarter of fiscal 2020 was $322 million, compared to $317 million over the same period in fiscal 2019, and reflected revised customer services charges, whereby existing base rates increased on average by 0.8%, effective September 1, 2019, to recover the cost of domestic space-based surveillance data services and by 3.6% on average, effective January 1, 2020, to recover the cost of oceanic space-based surveillance data services.

In late December 2019 and early 2020, a novel coronavirus was confirmed in multiple countries throughout the world and on March 11, 2020, was declared as a pandemic by the World Health Organization. The outbreak and resulting economic contraction has had, and is expected to continue to have, a negative impact on demand for air travel globally. 

Starting in the latter part of February and continuing in March and April of 2020, NAV CANADA has seen a decline in air traffic movements as compared to the same period in fiscal 2019. The impact on air traffic movements is due to flight and route cancellations and the introduction of fleet groundings, travel advisories and restrictions occasioned by the pandemic.

While it is still too early to say what the extent of the impact will be on our future results, we anticipate the reduced activity will have a significant negative impact on NAV CANADA’s business and results of operations. 

Apart from the impact of this pandemic on our revenues and operations, there may also be disruptions, including to supply chains and third-party service providers, as well as potential disruptions to our workforce. We are working diligently to minimize the impact.

The pandemic may also impact the cost of capital in the future which may arise from disrupted credit markets and credit rating actions.

Given the rapidly evolving situation, Management continues to analyze the extent of the financial impact, which could be material, depending on the duration of the pandemic. The Company has already taken steps to reduce operating costs as well as its ongoing and future capital program spending. The Company also intends to access its available liquidity reserves to support its operations. The Company will also avail itself of government relief where possible.

Management is working diligently to continue to provide the safe movement of aircraft as an essential service and has taken steps to help protect the safety of its employees.

“The Company was effective in containing costs in the second quarter, mindful of the decline in air traffic we saw earlier in the fiscal year. With global uncertainty in the aviation sector and beyond due to the COVID-19 pandemic, NAV CANADA will continue to adapt and manage our operations accordingly, with a continued focus on safety and providing value to our stakeholders,” said Neil Wilson, President and CEO.

Operating expenses for the second quarter of fiscal 2020 were $387 million as compared to $360 million over the same period in fiscal 2019, mainly due to higher compensation costs, including pension current service costs as well as higher costs for domestic and oceanic space-based surveillance data services.

Net other income and expenses for the second quarter of fiscal 2020 was a net expense of $25 million as compared to a net expense of $27 million over the same period in fiscal 2019.

The Company had a net loss (before net movement in regulatory deferral accounts including rate stabilization) of $90 million in the second quarter of fiscal 2020 as compared to a net loss of $70 million for the second quarter of fiscal 2019.

The Company had negative free cash flow⁽¹⁾ of $24 million in the second quarter of fiscal 2020 due to capital expenditures exceeding cash flows from operations, ending the quarter with cash of $48 million.

The Company is subject to legislation that regulates its approach to setting charges. The timing of the recognition of certain revenue and expenses recovered through charges is recorded through movements in regulatory deferral accounts. The net movement in regulatory deferral accounts for the second quarter of fiscal 2020 was income of $40 million as compared to income of $26 million over the same period in fiscal 2019. This change in regulatory deferrals is primarily due to a $15 million net increase in regulatory deferral adjustments to reflect certain transactions in the periods in which they will be considered for rate setting.

On January 23, 2020, the Canadian Transportation Agency (CTA) upheld the Company’s revised service charges which had been appealed by the International Air Transport Association (IATA) in September 2019. In February 2020, IATA, as supported by Air Canada, filed a Judicial Review application in relation to the CTA’s decision. NAV CANADA, as it did with the original appeal, will vigorously defend the Judicial Review application recently filed by IATA.

The Company’s Financial Statements and Management’s Discussion and Analysis for the three and six months ended February 29, 2020 can be found at: 

• Financial Statements
• Management’s Discussion and Analysis

Received directly from NAV CANADA

OTTAWA, April 03, 2020 (GLOBE NEWSWIRE) — NAV CANADA announced today its traffic figures for the month of February 2020 as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the last fiscal year.

Traffic in February 2020 decreased by an average of 0.5 per cent compared to the same month in 2019. NAV CANADA’s fiscal year runs from September 1 to August 31.

Weighted charging units represent a traffic measure that reflects the number of flights, aircraft size and distance flown in Canadian airspace.

Provided by World ATM Congress

ALEXANDRIA, Va., March 23, 2020 /CNW/ — ATCA (the Air Traffic Control Association) and CANSO (the Civil Air Navigation Services Organisation) are honoured to announce the winners for the inaugural Maverick Awards presented by World ATM Congress. The Awards — which received over 100 nominations in this first year — showcase the brightest ideas for the future, recognise positive contributions to the environment and conservation, celebrate cooperation between partners and stakeholders, and promote overall excellence in the aviation industry.

The Collaboration Award recognises the importance of effective relationships and partnerships within/across disciplines and sectors to achieve a shared goal.

This year’s winner is NATS, NAV CANADA, and Aireon LLC.
Aireon’s pioneering global, real-time space-based Automatic Dependent Surveillance-Broadcast (ADS-B) service was implemented by NATS and NAV CANADA, alongside existing capabilities, to deploy new global air traffic control (ATC) separation standards and create a revised concept of operations for the North Atlantic region. On 27 March 2019, the organisations forever transformed the global airspace by safely and successfully transitioning a new air traffic services surveillance capability—space-based ADS-B together with new ATM tools and ATC separation standards—into live service.

The Innovation Award recognises new ideas, technologies, and concepts that challenge current ATM norms with the potential to significantly advance performance, operations, or capabilities.

This year’s winner is Saab Digital Air Traffic Solutions and Scandinavian Mountains Airport.
Saab Digital Air Traffic Solutions and Scandinavian Mountains Airport built a state-of-the-art, green-field airport equipped with digital tower services from a remote tower centre in Sundsvall, Sweden. Controllers are now able to provide services on-demand from a digital tower centre shared by three other airports. With Scandinavian Mountains Airport being a seasonal airport, Saab Digital Air Traffic Solutions’ remote tower concept is a true enabler for efficient, cost-effective ATC service for the region.

The Sustainability Award recognises leaders, initiatives, and organisations working towards reducing aviation’s impact on the environment and making significant contributions to improving the environmental footprint of aviation through ATM.

This year’s winner is ENAIRE.
ENAIRE, in close collaboration with CRIDA, developed ENAIRE’s PERSEO tool, which generates fuel and emissions savings for every flight to, in turn, be analysed to improve the Spanish air route network. In 2018, ENAIRE controllers saved, through ATC direct clearance, about 7 million nautical miles for flights managed in Spanish airspace, preventing the emission of 243,000 tons of CO₂.

Due to the cancellation of World ATM Congress 2020, winners of each category were announced earlier today via teleconference by ATCA’s President and CEO Peter F. Dumont and CANSO’s Director General Simon Hocquard. For more information on winners, finalists, judges, and honourable mentions, view the Maverick Awards programme.