OTTAWA, ON, Jan. 15, 2025 /CNW/ – NAV CANADA announced today its traffic figure for the month of December 2024 as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the prior year.
In December 2024 weighted charging units were higher on average by 3.4 percent compared to the same month in 2023.
Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s air traffic revenue.
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record, and technology innovation.
OTTAWA, ON, Jan. 8, 2025 /CNW/ – NAV CANADA today released its financial results for the three months ended November 30, 2024.
In the first quarter of fiscal 2025, the Company saw air traffic levels, as measured in weighted charging units, increase by 3.6% on a year over year basis. The Company’s revenue for the first quarter of fiscal 2025 was $449 million, compared to $464 million over the same period in fiscal 2024.
The Company had positive free cash flow of $83 million in the first quarter of fiscal 2025 as compared to positive free cash flow of $98 million in the same period in fiscal 2024. The decrease in free cash flow is driven by lower operating cash inflows and higher capital investments as compared to the first quarter of fiscal 2024. The Company ended the quarter with a cash balance of $731 million.
“As I step into the CEO role, my vision is clear: NAV CANADA will continue to prioritize safety, propel innovation, and enhance service to our customers in this next chapter,” says Mark Cooper, NAV CANADA, President, and CEO. “We are committed to fostering a thriving culture and workplace where collaboration and innovation grow. Together, we are building on our strengths to create greater value for our customers, employees, and stakeholders.”
Operating expenses for the first quarter of fiscal 2025 were $428 million as compared to $381 million over the same period in fiscal 2024, primarily due to higher compensation costs driven by an increase in both staffing and wage levels as well as increased costs related to system maintenance and development.
Other income and expenses for the first quarter of fiscal 2025 was income of $4 million as compared to expenses of $17 million over the same period in fiscal 2024, primarily due to an increase in the fair value of the Company’s investment in Aireon.
The Company had a net income (before net movement in regulatory deferral accounts including rate stabilization) of $25 million in the first quarter of fiscal 2025 as compared to net income of $66 million for the first quarter of fiscal 2024.
The Company is subject to legislation that regulates its approach to setting charges. The timing of the recovery of certain revenue and expenses through customer service charges is managed through movements in regulatory deferral accounts. The net movement in regulatory deferral accounts for the first quarter of fiscal 2025 was an expense of $25 million as compared to an expense of $45 million over the same period in fiscal 2024. This change in regulatory deferrals is primarily due to a decrease in favourable rate stabilization adjustments of $34 million and a $14 million net decrease in adjustments required to align the accounting recognition of certain transactions to the periods in which they will be considered for rate setting, mainly due to the deferral, for rate setting purposes, of the increase in the fair value of the Company’s investment in Aireon. As at November 30, 2024, the rate stabilization account had a balance of $152 million to be recovered from customers through future customer service charges.
Associated Links
The Company’s Financial Statements and Management’s Discussion and Analysis for the three months ended November 30, 2024 can be found at:
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record and technology innovation.
OTTAWA, ON, Dec. 19, 2024 /CNW/ – NAV CANADA today announced it will proceed with its proposal to change customer service charges consistent with the Notice issued September 20, 2024.
Context
On January 1, 2024, NAV CANADA implemented an average net decrease in service charges of 5.57% consisting of a Base Rate decrease averaging 9.33% and a new Temporary Rate averaging 3.76% to recover the Rate Stabilization Account (“RSA”) shortfall over a five-year period. Since that rate change was implemented, continuing downside uncertainties for the aviation industry necessitated a downward adjustment to our medium-term air traffic forecast. Taking this revised forecast into account, our budgeted growth in costs in fiscal 2025, which are due in large part to investments in operational training and staffing, is projected to exceed revenue generated by the volume of air traffic. This necessitates an increase in Base Rates. As a partially mitigating factor, cost management efforts and higher than planned other revenue in fiscal 2024, enabled us to allocate a portion of the recovery of our RSA to partially offset the impact on service charge rates in fiscal 2025.
Revised Service Charges
The revised service charges have two components: (i) a Base Rate adjustment to recover NAV CANADA’s anticipated fiscal 2025 costs less a portion of the RSA surplus in fiscal 2024, by service; and (ii) an average Temporary Rate decrease to reduce the amount of the historical RSA shortfall to be recovered in fiscal 2025. The overall average net increase in service charges of 3.73% includes an average Base Rate increase of 4.99% and an average Temporary Rate decrease of 26.73% compared to existing rates. The rate adjustments vary by service category, depending on how much the revenue generated by each charge deviates from its breakeven level for fiscal 2025 after reflecting a portion of the higher than planned RSA recovery in fiscal 2024, as well as how much it has contributed to the remaining RSA shortfall balance. These revised charges will become effective on January 1, 2025 except as otherwise noted.
The proposal to revise charges was released on September 20, 2024 and NAV CANADA provided sixty (60) days to receive representations from users. We have reflected on the representations received and have identified opportunities to further improve engagement activities with stakeholders to enhance discussions on our strategy, benefits and costs.
Details of NAV CANADA’s revised service charges are available here:
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace. The Company is internationally recognized for its safety record and technology innovation.
OTTAWA, ON, Nov. 25, 2024 /CNW/ – NAV CANADA today announced the appointment of Mark Cooper as President & CEO, effective December 2, 2024.
Mr. Cooper has 25 years of experience in aviation and has been instrumental in the evolution of NAV CANADA’s Strategic Direction since joining NAV CANADA in 2019 as Vice President & Chief Technology and Information Officer.
“The Board of Directors is pleased to announce the appointment of Mark Cooper as the next leader of NAV CANADA. He brings a proven track record of innovation, supporting operational excellence, and visionary leadership. We are confident Mark’s expertise will guide NAV CANADA through its next chapter and reinforce our commitment to providing value to stakeholders through enhanced safety, efficiency, resiliency, and sustainable growth,” said Michelle Savoy, Chair of the Board of Directors of NAV CANADA.
Mark’s appointment follows the previously announced retirement of Raymond G. Bohn, as President and CEO.
“We thank Ray for his exceptional leadership at NAV CANADA, steering the company through challenges, and delivering on key initiatives. His dedication and vision have laid a strong foundation for the future”.
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace. The company is internationally recognized for its safety record, and technology innovation.
OTTAWA, ON, Nov. 22, 2024 /CNW/ – NAV CANADA announced today its traffic figure for the month of October 2024 as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the prior year.
In October 2024 weighted charging units were higher on average by 2.7 percent compared to the same month in 2023.
Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s air traffic revenue.
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record, and technology innovation.
OTTAWA, ON, Oct. 24, 2024 /CNW/ – NAV CANADA today released its financial results for the year ended August 31, 2024.
The Company saw air traffic levels for fiscal 2024, as measured in weighted charging units, increase by 6.4% on a year-over-year basis. The Company’s revenue for fiscal 2024 was $1,800 million, compared to $1,778 million in fiscal 2023.
The Company had free cash flow of $162 million in fiscal 2024 as compared to free cash flow of $350 million in fiscal 2023. The decrease in free cash flow in fiscal 2024 is driven primarily by higher payments to employees and suppliers and higher capital expenditures as compared to fiscal 2023.
“Over the past year, NAV CANADA has demonstrated improved operational performance, a testament to the resilience and dedication of our teams. We have been actively focusing on cost management and refining our modernization strategies, which has led to notable improvements across various areas such as advancement in technology initiatives, infrastructure renewal, recruitment, and training. Our commitment to delivering value to our customers remains unwavering, and we are proud to have partnered to increase our operational workforce to support their needs,” said Raymond Bohn, President and CEO, NAV CANADA. “These efforts collectively position us for continued growth and success in the coming year.”
Operating expenses for fiscal 2024 were $1,638 million as compared to $1,493 million in fiscal 2023, primarily due to higher compensation costs driven by an increase in both staffing and wage levels.
Net other income and expenses for fiscal 2024 was a net expense of $80 million as compared to a net expense of $124 million in fiscal 2023. The higher expense in fiscal 2023 is mainly due to the reduction in the fair value of the Company’s investment in preferred interests of Aireon LLC recorded in fiscal 2023.
The Company had a net income (before net movement in regulatory deferral accounts including rate stabilization) of $81 million in fiscal 2024 as compared to a net income of $161 million in fiscal 2023.
The Company is subject to legislation that regulates its approach to setting customer service charges. The timing of the recognition of certain revenue and expenses recovered through customer service charges is recorded through movements in regulatory deferral accounts. The net movement in regulatory deferral accounts for fiscal 2024 was an expense of $81 million as compared to an expense of $161 million in fiscal 2023. This change in regulatory deferrals is primarily due to a decrease in favourable rate stabilization adjustments of $65 million and a $15 million net increase in adjustments required to align the accounting recognition of certain transactions to the periods in which they will be considered for rate setting. As at August 31, 2024, the rate stabilization account had a balance of $175 million to be recovered from customers through future customer service charges.
Associated Links
The Company’s Financial Statements, Management’s Discussion and Analysis and Annual Information Form for the year ended August 31, 2024 can be found at:
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
OTTAWA, ON, Oct. 20, 2024 /CNW/ – NAV CANADA announced today its traffic figure for the month of September 2024 as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the prior year.
In September 2024 weighted charging units were higher on average by 4.4 percent compared to the same month in 2023.
Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s air traffic revenue.
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record, and technology innovation.
OTTAWA, ON, Sept. 20, 2024 /CNW/ – NAV CANADA today released for consultation a proposal to revise customer service charges, effective January 1, 2025. The proposal calls for increased service charges averaging 3.73% across our service categories. The overall average net increase in service charges includes an average Base Rate increase of 4.99% and an average Temporary Rate decrease of 26.73% compared to existing rates.
On January 1, 2024, NAV CANADA implemented an average net decrease in service charges of 5.57% consisting of a Base Rate decrease averaging 9.33% and a new Temporary Rate averaging 3.76% to recover the Rate Stabilization Account (“RSA”) shortfall over a five-year period.
Since that rate change was implemented, our medium-term air traffic forecast was adjusted downwards, reflecting the impact of continuing downside uncertainties for the aviation industry. As a result of cost management efforts and higher than planned other revenue, our financial results in fiscal 2024 are projected to be $62.7M better than planned. This additional RSA recovery was considered in the determination of service charge rates in fiscal 2025. Notwithstanding these positive results, the budgeted growth in costs in fiscal 2025, due mainly to investments in operational training and staffing, is projected to exceed the expected growth in air traffic.
There are two elements in the proposal to revise rates: (i) a Base Rate increase by service to recover NAV CANADA’s anticipated fiscal 2025 costs less a portion of the RSA surplus in fiscal 2024; and (ii) a Temporary Rate decrease to adjust the portion of the remaining cumulative RSA shortfall to be recovered in fiscal 2025.
With this proposed service charge revision, the RSA shortfall balance is projected to decline to $155.7M by the end of fiscal 2025, which is aligned with our plan to recover the RSA shortfall over an extended period of time. Despite the proposed increase, NAV CANADA remains competitive on cost efficiency in comparison to other air navigation service providers globally. It is also worth noting that cumulative increases to NAV CANADA’s service charges continue to compare favourably to increases in the Consumer Price Index over the past 10 years and over the period since our charges were fully implemented in 1999.
“The Rates Proposal reflects a range of factors, including a weaker forecast for air traffic growth, our continued focus on cost management, our gradual approach to rebuilding our financial position following the COVID pandemic, and the need for critical infrastructure renewal and modernization,” said Raymond Bohn, President and CEO, NAV CANADA “Our team looks forward to garnering feedback on the proposal from our valued customers and stakeholders.”
The proposal is now subject to the mandatory 60-day consultation period required by legislation. Input received during the consultation period will be considered by NAV CANADA’s management and Board of Directors, prior to a final decision being made on the proposal.
Details of NAV CANADA’s proposed revised service charges are available here:
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace. The Company is internationally recognized for its safety record, and technology innovation.
OTTAWA, ON, Aug. 21, 2024 /CNW/ – NAV CANADA announced today its traffic figure for the month of July 2024 as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the prior year.
In July 2024 weighted charging units were higher on average by 5.3 percent compared to the same month in 2023.
Weighted charging units represent a traffic measure that reflects the number of billable flights, aircraft size and distance flown in Canadian airspace and is the basis for movement-based service charges, which comprise the vast majority of the Company’s air traffic revenue.
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record, and technology innovation.
OTTAWA, ON, July 29, 2024 /CNW/ – NAV CANADA today announced the retirement of Raymond G. Bohn as President and Chief Executive Officer of the company effective October 31st, 2024.
Raymond Bohn has held the position since February 2021 and led the company through a period of considerable challenge. He served NAV CANADA for over 24 years, having delivered transformational changes in various leadership positions throughout the company.
“I want to thank Ray for his innumerable contributions to NAV CANADA over the years, especially in managing the many issues that arose during the pandemic and its aftermath”, said Board Chair Michelle Savoy. “He has positioned the company well for future success.”
The Board of Directors will oversee a comprehensive search process to identify Bohn’s successor. Bohn will continue in his role and support the Board in this transition until his retirement date.
“The Board, the Executive Management Committee, and all employees wish him well in his retirement,” said Savoy.
About NAV CANADA
NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory services, weather briefings and aeronautical information services for more than 18 million square kilometres of Canadian domestic and international airspace.
The Company is internationally recognized for its safety record, and technology innovation.
