Nav Canada is proposing to reduce customer service charges by close to 6 percent, which would claw back some of an almost 30 percent hike implemented on Sept. 1, 2020, during the pandemic when global air traffic was significantly reduced.

The proposal calls for decreased service charges averaging 5.57% across its service categories to take effect on Jan. 1, 2024.

Citing fixed costs to maintain its safety and essential service mandate at Canadian airports, Nav Canada says it was not able to fully offset its significantly lower revenues during the pandemic and that costs ultimately exceeded revenue as global air traffic declined.

Nav Canada now says its current air traffic forecast reflects the fact that demand for air travel has remained strong despite mounting economic concerns and that growth is increasingly attributable to normal seasonal variation plus incremental growth.

As a private, not-for-profit company, Nav Canada charges airlines and aircraft operators to cover the costs of the services it provides, including air traffic control, flight information, weather briefings, and airport advisory services. The charges are applied on a per-flight basis and are based on the distance flown and weight of the aircraft.

Cost of the fee are passed on to consumers on airline tickets; as an example, in 2020, WestJet was forced to hike the fee by between $4 and $7 per passenger, depending on flight duration to cover the increased NavCan fee.

“The Rates Proposal takes a balanced approach between Nav Canada rebuilding its financial resilience, investing in safety and service delivery while supporting the industry…” said company president and CEO Raymond Bohn.

The proposal is now subject to a 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.