NAV CANADA reports October traffic figures

OTTAWA, ON, Nov. 17, 2022 /CNW/ – NAV CANADA announced today its traffic figures for the month of October 2022, as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to its previous fiscal year and to its 2019 fiscal year (pre-pandemic). A fiscal year runs from September 1 to August 31.

In October 2022 weighted charging units were higher on average by 32.3 percent compared to the same month in 2021. As compared to the same month in fiscal 2019, October 2022 weighted charging units were lower on average by 8.2 percent.

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. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

NAV CANADA reports September traffic figures

OTTAWA, ON, Oct. 21, 2022 /CNW/ – NAV CANADA announced today its traffic figures for the month of September 2022, as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to its previous fiscal year and to its 2019 fiscal year (pre-pandemic). A fiscal year runs from September 1 to August 31.

In September 2022 weighted charging units were higher on average by 38.5 percent compared to the same month in 2021. As compared to the same month in fiscal 2019, September 2022 weighted charging units were lower on average by 10.1 percent.

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. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

NAV CANADA announces year-end financial results

OTTAWA, ON, Oct. 20, 2022 /CNW/ – NAV CANADA today released its financial results for the year ended August 31, 2022.

The Company saw air traffic levels for fiscal 2022, as measured in weighted charging units(1), increase 76.8% on a year-over-year basis. In comparison to pre-pandemic levels in fiscal 2019 however, weighted charging units were 21.5% lower. The Company’s revenue for fiscal 2022 was $1,507 million as compared to $870 million in fiscal 2021.

The Company had positive free cash flow(2) of $175 million in fiscal 2022 as compared to negative free cash flow of $509 million in fiscal 2021. The positive free cash flow in fiscal 2022 is largely attributable to higher than expected receipts from customer service charges and proceeds from strategic divestments during the year.

“Throughout fiscal 2022, NAV CANADA’s dedicated employees have maintained a strong focus on supporting and collaborating with customers and stakeholders as air traffic continued to increase, while laying the foundations for its long-term strategic direction by strengthening key partnerships and leveraging world-leading technologies,” said Raymond G. Bohn, President and CEO. “Our commitment to driving value for our customers, stakeholders and society to meet the needs of an evolving industry has never been stronger. We are confident in our ability to invest in people, safety, and our core business as we set our sights on the future.”

Operating expenses for fiscal 2022 were $1,416 million as compared to $1,278 million in fiscal 2021. The increase is largely due to the Canada Emergency Wage Subsidy program ending in fiscal 2022 as well as an increase in overtime costs as air traffic levels recover.

Net other income and expenses for fiscal 2022 were a net expense of $183 million as compared to a net expense of $176 million in fiscal 2021. During fiscal 2022, the Company recorded an $82 million (U.S. $63 million) non-cash reduction to the fair value of its investment in preferred interests of Aireon LLC as compared to a non-cash reduction of $24 million (U.S. $21 million) recorded in fiscal 2021. Foreign exchange gains in fiscal 2022, as compared to foreign exchange losses in fiscal 2021, primarily related to the Company’s investment in Aireon LLC, along with lower interest costs related to employee benefits and long-term debt partially offset the negative change in fair value.

The Company had a net loss (before net movement in regulatory deferral accounts including rate stabilization) of $79 million in fiscal 2022 as compared to a net loss of $577 million in fiscal 2021.

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 2022 was income of $79 million as compared to income of $577 million in fiscal 2021. This change in regulatory deferrals is primarily due to favourable rate stabilization adjustments of $82 million in fiscal 2022 as compared to unfavourable adjustments of $401 million for the same period of fiscal 2021, along with a net decrease of $15 million in adjustments to align the accounting recognition of certain transactions to the periods in which they will be considered for rate setting.

Associated Links

The Company’s Financial Statements, Management’s Discussion and Analysis and Annual Information Form for the year ended August 31, 2022 can be found at:

Financial Statements
Management’s Discussion and Analysis
Annual Information Form

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. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

(1)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 revenue.
(2)Free cash flow is a non-GAAP financial measure used by the Company to enhance the overall understanding of its financial and operating performance. Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines free cash flow as cash generated from operations, less capital expenditures, investments in regulatory assets, investments in Aireon LLC and equity related investments and principal payment of lease liabilities. Management places importance on this indicator as it assists in measuring the impact of its investment program on the Company’s financial resources and provides users a more stable indication of the Company’s ability to meet its debt obligations and continue to invest in the air navigation system.

NAV CANADA reports August traffic figures

OTTAWA, ON, Sept. 20, 2022 /CNW/ – NAV CANADA announced today its traffic figures for the month of August 2022, as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to its previous fiscal year and to its 2019 fiscal year (pre-pandemic). A fiscal year runs from September 1 to August 31.

In August 2022 weighted charging units were higher on average by 52.1 percent compared to the same month in 2021. As compared to the same month in fiscal 2019, August 2022 weighted charging units were lower on average by 12.1 percent.

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. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

NAV CANADA reports July traffic figures

OTTAWA, ON, Aug. 12, 2022 /CNW/ – NAV CANADA announced today its traffic figures for the month of July 2022, as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the last fiscal year and to its 2019 fiscal year. A fiscal year runs from September 1 to August 31.

In July 2022 weighted charging units were higher on average by 75.2 percent compared to the same month in 2021. As compared to the same month in fiscal 2019, July 2022 weighted charging units were lower on average by 13.5 percent.

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. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

Updated Timeline for ADS-B Performance Mandate in Canada

OTTAWA, ON, Aug. 2, 2022 /CNW/ – NAV CANADA today confirmed that due to supply chain impacts related to the COVID pandemic, the previously announced implementation dates for the Automatic Dependent Surveillance – Broadcast (ADS-B) Out Performance Mandate have been adjusted for Class A and B airspace.

In coordination with Transport Canada, the state regulator, new dates have been developed in a manner reflective of customer feedback regarding supply chain limitations and backlogs to acquire and install the appropriate transponder, as well as current equipage levels in each class of airspace.

As a result, the mandate will come into effect as follows:

  • Class A Canadian airspace on August 10, 2023
  • Class B Canadian airspace on May 16, 2024
  • Class C, D and E to occur no sooner than 2026 and will be determined pending further assessment.

In February 2022, NAV CANADA announced Canada’s plan to implement ADS-B Out mandate to enhance aircraft operations in domestic airspace – requiring aircraft operators flying in certain domestic airspace to meet ADS-B Out Performance Requirements.

Following the announcement and after considerable industry engagement with Transport Canada and industry stakeholders, NAV CANADA is confirming new official start dates to allow customers adequate time to equip.

“The valuable input we have received from our stakeholders and partners on the Canadian ADS-B mandate indicates that later dates for the mandate requirement are warranted as the industry continues to navigate the ongoing impacts to supply chains due to the pandemic,” said Jeff Dawson, Assistant Vice President, Operational Support. “We are taking these steps to ensure customers have adequate time to comply with mandate equipage requirements.”

“What we are seeing in terms of equipage is very encouraging – rates in Class A airspace are at 95 per cent, while those in Class B airspace are above the 88 per cent mark and growing steadily.”

The equipage requirements of Canada’s approach to the implementation of the ADS-B are in line with a growing number of other countries in the world, and the adoption of satellite-based surveillance technology ensures long-term alignment with the global aviation system.

About the ADS-B Out Performance Requirements Mandate

To meet the ADS-B Out Performance Mandate, aircraft will be required to:

  • Be equipped with an appropriate transponder with ADS-B out capabilities and performance with the applicable standard of Radio Technical Commission for Aeronautics (RTCA) DO-260B, “Minimum Operational Performance Standards”, or newer.
  • Have antenna capability for broadcast toward space-based ADS-B receivers emitting 1090 MHz extended squitter. This requirement can be met either through antenna diversity (the use of a top and bottom antenna) or with a single antenna that is capable of transmitting both towards the ground and up towards satellites.

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. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

NAV CANADA reports June traffic figures

OTTAWA, ON, July 15, 2022 /CNW/ – NAV CANADA announced today its traffic figures for the month of June 2022, as measured in weighted charging units for enroute, terminal and oceanic air navigation services, in comparison to the last fiscal year and to its 2019 fiscal year. A fiscal year runs from September 1 to August 31.

In June 2022 weighted charging units were higher on average by 107.3 percent compared to the same month in 2021. As compared to the same month in fiscal 2019, June 2022 weighted charging units were lower on average by 12.8 percent.

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. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

NAV CANADA announces third quarter financial results

OTTAWA, ON, July 8, 2022 /CNW/ – NAV CANADA today released its financial results for the three and nine months ended May 31, 2022.

In the third quarter of fiscal 2022, the Company saw air traffic levels, as measured in weighted charging units, increase 95.3% on a year over year basis. The Company’s revenue for the third quarter of fiscal 2022 was $381 million, compared to $196 million over the same period in fiscal 2021. However, in comparison to the same period in fiscal 2019 (prior to the COVID-19 pandemic), weighted charging units were 19.4% lower.

The Company had negative free cash flow of $21 million in the third quarter of fiscal 2022 as compared to negative free cash flow of $140 million for the same period in fiscal 2021. The negative free cash flow is attributable to capital expenditures exceeding operating cash inflows. The Company ended the quarter with a cash balance of $321 million.

“During the third quarter, NAV CANADA was focused on meeting service delivery demands as air traffic levels continued to increase while progressing on our strategic plan to improve the Company’s resilience and provide longer-term value for stakeholders. A key component of our strategic plan is consideration of our employees and collaborating closely with partners, customers and other key stakeholders,” said Raymond G. Bohn, President and CEO.

Operating expenses for the third quarter of fiscal 2022 were $361 million as compared to $305 million over the same period in fiscal 2021. The increase is largely due to the end of the Canada Emergency Wage Subsidy program in addition to an increase in overtime costs as traffic levels recover.

Net other income and expenses for the third quarter of fiscal 2022 were a net expense of $28 million as compared to a net expense of $86 million over the same period in fiscal 2021. During the third quarter of fiscal 2021, the Company recorded a $36 million (U.S. $30 million) non-cash reduction to the fair value of its investment in preferred interests of Aireon LLC (Aireon). Lower foreign exchange losses in the third quarter of fiscal 2022 primarily related to the Company’s investment in Aireon also led to the decrease in net expense.

The Company had a net loss (before net movement in regulatory deferral accounts including rate stabilization) of $8 million in the third quarter of fiscal 2022 as compared to a net loss of $186 million for the third quarter of fiscal 2021.

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 third quarter of fiscal 2022 was income of $3 million as compared to income of $194 million over the same period in fiscal 2021. This change in regulatory deferrals is primarily due to favourable rate stabilization adjustments of $20 million in the third quarter of fiscal 2022 as compared to unfavourable adjustments of $119 million for the same period in fiscal 2021, along with a net decrease of $52 million in adjustments to align the accounting recognition of certain transactions to the periods in which they will be considered for rate setting.

Associated Links

The Company’s Financial Statements and Management’s Discussion and Analysis for the three and nine months ended May 31, 2022 can be found at:

Financial Statements
Management’s Discussion and Analysis

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 has been internationally recognized for its safety record and technology innovation. Air traffic management systems developed by NAV CANADA are used by air navigation service providers in countries worldwide.

Government of Canada invests in projects to improve supply chain efficiency for Canadian airlines across the country

Transport Canada

TORONTO, June 29, 2022 /CNW/ – The Government of Canada is committed to strengthening Canada’s trade corridors, which support our supply chains, help grow our economy and ensure its recovery, while creating good, middle-class jobs.

Today, the Minister of Transport, the Honourable Omar Alghabra, announced close to $105 million for three new projects with NAV CANADA under the National Trade Corridors Fund. These projects will help improve supply chain efficiency for Canadian airlines across the country.

The Government of Canada will contribute:

  • Up to $39.2 million to provide new technology to improve the reliability, safety, and performance of Canada’s air transportation system, especially in the event of extreme weather and in remote communities. NAV CANADA will contribute $59.7 million toward the project, for a total investment of $98.9 million.
  • Up to $34.5 million to implement technology to improve air traffic management. The proposed project would also allow for the implementation of drone traffic management services to monitor and control drone operations in Canada’s airspace. NAV CANADA will contribute $50.7 million toward the project, for a total investment of $85.2 million.
  • Up to $31.2 million to improve the technology and infrastructure at four major airports (Montréal-Trudeau International Airport, Toronto Pearson International Airport, Calgary International Airport, and Vancouver International Airport) to respond to increased air traffic demand. The project will reduce flying time, decrease aircraft fuel consumption, increase the movement of cargo, and provide more efficiencies to meet the growing demand at these airports. For this project, NAV CANADA will contribute $45.8 million, which represents a total investment of $77 million.

Through the National Trade Corridors Fund, the Government of Canada is investing in well-functioning trade corridors to help Canadians compete in key global markets, trade more efficiently with international partners, and to keep Canadian supply chains competitive and resilient. It represents a long-term commitment to work with stakeholders on strategic infrastructure projects to address transportation bottlenecks, vulnerabilities, and congestion along Canada’s trade corridors.

Quotes

“An efficient and reliable transportation network is key to Canada’s economic growth. Our government, through the National Trade Corridors Fund, is making investments that will support the flow of goods across Canada’s supply chains now and into the future. These three NAV CANADA projects will improve the efficiency and flow of air cargo in Canada by reducing bottlenecks at the major hubs which cause delays across the entire aviation network. A more efficient movement of goods is beneficial to Canada’s economy and to Canadians from coast-to-coast-to-coast.”

The Honourable Omar Alghabra  
Minister of Transport 

“We are very proud of the key role we play, in partnership with our industry partners, to keep Canada’s skies safe. These important investments will accelerate innovation and deliver significant safety, environmental and economic benefits through a seamless, space-enabled, digitally enhanced air navigation system to address future growth in air travel and provide greater value to Canadians.”

Raymond G. Bohn 
President and CEO, NAV CANADA 

Quick Facts

  • The National Trade Corridors Fund is a competitive, merit-based program designed to help infrastructure owners and users invest in the critical transportation assets that support economic activity in Canada. Under this program, a total of $4.6 billion over 11 years (2017-2028) has been announced.
  • Budget 2022 proposes $450 million over five years, starting in 2022-23, to support supply chain projects through the National Trade Corridors Fund, which will help ease the movement of goods across Canada’s transportation networks.
  • Transport Canada delivers the National Trade Corridors Fund, which supports improvements to Canada’s roads, rail, air, and marine shipping routes to foster domestic and international trade.

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Associated Links