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April 15, 2007

Nav Canada Cuts User-Fee Rates

By Russ Niles, Contributing Editor

Nav Canada, the private company that runs Canada’s airspace system, is making money, and since it isn’t supposed to it’s giving the profits back in the form of rate reductions. Effective Sept. 1, rates charged for its services will be cut by 3 percent, which is in addition to the 1.8 percent cut made last Sept. 1. "Increased traffic growth together with the company's continued focus on cost control, provide the opportunity to offer lower service charges to our customers while meeting our essential safety and service obligations," CEO John Crichton said in a news release. Nav Canada took over air traffic services 10 years ago and rates have fluctuated according to traffic levels. They took a significant jump in the doldrums following 9/11, but traffic is up about 5 percent this year and that makes the whole operation more efficient. The company has also built an $86 million war chest in case there’s another unexpected downturn.

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