NAV CANADA
Encyclopedia
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
's civil air navigation system (ANS).
The company employs approximately 2,000 air traffic controllers
Air traffic control
Air traffic control is a service provided by ground-based controllers who direct aircraft on the ground and in the air. The primary purpose of ATC systems worldwide is to separate aircraft to prevent collisions, to organize and expedite the flow of traffic, and to provide information and other...
(ATCs), 800 flight service specialists (FSSs) and 700 technologists
Engineering technologist
An engineering technologist, is a specialist devoted to the implementation of existing technology within a field of engineering. Technologists often work with engineers in a wide variety of projects by applying basic engineering principles and technical skills...
. It has been responsible for the safe, orderly and expeditious flow of air traffic in Canadian airspace
Canadian airspace
Canadian airspace is the region of navigable airspace above the surface of the Earth that falls within a region roughly defined by the Canadian land mass, the Canadian arctic, the Canadian archipelago, and areas of the high seas....
since November 1, 1996 when the government transferred the ANS from Transport Canada to Nav Canada. As part of the transfer, or privatization, Nav Canada paid the government CA$
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
1.5 billion.
Nav Canada, which operates independently of any government funding, is headquartered in Ottawa, Ontario.
Facilities
Nav Canada's operations consist of various sites across the country. These include:- About 1,400 ground-based navigationNavigationNavigation is the process of monitoring and controlling the movement of a craft or vehicle from one place to another. It is also the term of art used for the specialized knowledge used by navigators to perform navigation tasks...
aids - 57 flight service stationFlight service stationA Flight Service Station is an air traffic facility that provides information and services to aircraft pilots before, during, and after flights, but unlike air traffic control , is not responsible for giving instructions or clearances or providing separation...
s - 8 flight information centres, one each in:
- KamloopsKamloops, British ColumbiaKamloops is a city in south central British Columbia, at the confluence of the two branches of the Thompson River and near Kamloops Lake. It is the largest community in the Thompson-Nicola Regional District and the location of the regional district's offices. The surrounding region is more commonly...
- most of British Columbia - EdmontonEdmontonEdmonton is the capital of the Canadian province of Alberta and is the province's second-largest city. Edmonton is located on the North Saskatchewan River and is the centre of the Edmonton Capital Region, which is surrounded by the central region of the province.The city and its census...
- all of Alberta and northeastern BC - WinnipegWinnipegWinnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...
- northwestern Ontario, all of Manitoba and Saskatchewan - LondonLondon, OntarioLondon is a city in Southwestern Ontario, Canada, situated along the Quebec City – Windsor Corridor. The city has a population of 352,395, and the metropolitan area has a population of 457,720, according to the 2006 Canadian census; the metro population in 2009 was estimated at 489,274. The city...
- most of Ontario - North BayNorth Bay, OntarioNorth Bay is a city in Northeastern Ontario, Canada. It is the seat of Nipissing District, and takes its name from its position on the shore of Lake Nipissing.-History:...
- all of Nunavut and Northwester Territories, most of the Arctic waters - Quebec CityQuebec CityQuebec , also Québec, Quebec City or Québec City is the capital of the Canadian province of Quebec and is located within the Capitale-Nationale region. It is the second most populous city in Quebec after Montreal, which is about to the southwest...
- all of Quebec, south western Labrador, tip of eastern Ontario - HalifaxHalifax Regional Municipality, Nova ScotiaHalifax Regional Municipality is the capital of the province of Nova Scotia, Canada. The Regional Municipality had a 2006 census population of 372,679, while the metropolitan area had a 2010 estimated population of 403,188, and the urban area of Halifax had a population of 282,924...
- all of New Brunswick, Nova Scotia and most of of Newfoundland and Labrador - WhitehorseWhitehorse, YukonWhitehorse is Yukon's capital and largest city . It was incorporated in 1950 and is located at kilometre 1476 on the Alaska Highway in southern Yukon. Whitehorse's downtown and Riverdale areas occupy both shores of the Yukon River, which originates in British Columbia and meets the Bering Sea in...
- northwestern British Columbia and all of Yukon
- Kamloops
- 42 control towersAir traffic controlAir traffic control is a service provided by ground-based controllers who direct aircraft on the ground and in the air. The primary purpose of ATC systems worldwide is to separate aircraft to prevent collisions, to organize and expedite the flow of traffic, and to provide information and other...
- 46 radarRadarRadar is an object-detection system which uses radio waves to determine the range, altitude, direction, or speed of objects. It can be used to detect aircraft, ships, spacecraft, guided missiles, motor vehicles, weather formations, and terrain. The radar dish or antenna transmits pulses of radio...
sites and 5 automatic dependent surveillance-broadcastAutomatic dependent surveillance-broadcastAutomatic Dependent Surveillance-Broadcast is a surveillance technology for tracking aircraft as part of the Next Generation Air Transportation System ...
(ADS-B) ground sites - 7 Area Control CentresArea Control CenterIn air traffic control, an Area Control Center , also known as a Center, is a facility responsible for controlling instrument flight rules aircraft en route in a particular volume of airspace at high altitudes between airport approaches and departures...
, one each in:- VancouverVancouverVancouver is a coastal seaport city on the mainland of British Columbia, Canada. It is the hub of Greater Vancouver, which, with over 2.3 million residents, is the third most populous metropolitan area in the country,...
(CZVR) - Vancouver International AirportVancouver International AirportVancouver International Airport is located on Sea Island in Richmond, British Columbia, Canada, about from Downtown Vancouver. In 2010 it was the second busiest airport in Canada by aircraft movements and passengers , behind Toronto Pearson International Airport, with non-stop flights daily to... - EdmontonEdmontonEdmonton is the capital of the Canadian province of Alberta and is the province's second-largest city. Edmonton is located on the North Saskatchewan River and is the centre of the Edmonton Capital Region, which is surrounded by the central region of the province.The city and its census...
(CZEG) - Edmonton International AirportEdmonton International AirportEdmonton International Airport is the primary air passenger and air cargo facility in the Edmonton region in the Canadian province of Alberta. It is a hub facility for Northern Alberta and Northern Canada providing regularly scheduled nonstop flights to over fifty communities in Canada, the United... - WinnipegWinnipegWinnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...
(CZWG) - Winnipeg International AirportWinnipeg International AirportWinnipeg James Armstrong Richardson International Airport, more commonly known as Winnipeg International Airport is an international airport in Winnipeg, Manitoba, Canada. It is the eighth busiest airport in Canada by passenger traffic, serving just over 3.3 million passengers, and the 12th... - Toronto CentreToronto Area Control CentreToronto Area Control Centre is one of 7 Area Control Centres in Canada operated by NAV CANADA. The ACC is based out of the control tower at Toronto Pearson International Airport....
(CZYZ) - Toronto Pearson International AirportToronto Pearson International AirportToronto Pearson International Airport is an international airport serving Toronto, Ontario, Canada; its metropolitan area; and the Golden Horseshoe, an urban agglomeration that is home to 8.1 million people – approximately 25% of Canada's population... - MontrealMontreal Area Control CentreMontreal Area Control Centre is one of 7 Area Control Centres in Canada operated by Nav Canada. Montreal ACC is located in a building on the outskirts of Montréal-Pierre Elliott Trudeau International Airport....
(CZUL) - Montreal International Airport - Moncton (CZQM) - Moncton International Airport
- GanderGander, Newfoundland and LabradorGander is a Canadian town located in the northeastern part of the island of Newfoundland in the province of Newfoundland and Labrador, approximately south of Gander Bay, south of Twillingate and east of Grand Falls-Windsor...
(CZQX) - Gander International AirportGander International AirportGander International Airport is located in Gander, Newfoundland and Labrador, Canada, and is currently run by the Gander Airport Authority. Canadian Forces Base Gander shares the airfield but is a separate entity from the airport.-Early years and prominence:...
- Vancouver
- North Atlantic Oceanic control centre: Gander ControlGander ControlGander Automated Air Traffic System is a proprietary system of Nav Canada used for the oceanic airspace of the Gander Area Control Centre .Most of the airspace is not monitored by radar, so procedures differ from those in continental airspaces...
NAV Canada has three facilities not located at an airport:
- National Operations Centre: OttawaOttawaOttawa is the capital of Canada, the second largest city in the Province of Ontario, and the fourth largest city in the country. The city is located on the south bank of the Ottawa River in the eastern portion of Southern Ontario...
(77 Metcalfe Street) - Technical Systems Centre: OttawaOttawaOttawa is the capital of Canada, the second largest city in the Province of Ontario, and the fourth largest city in the country. The city is located on the south bank of the Ottawa River in the eastern portion of Southern Ontario...
(280 Hunt Club Road) - NAV Centre Training and Conference Centre (formerly the Nav Canada Training Institute (NCTI)) - 1950 Montreal Road in Cornwall, OntarioCornwall, OntarioCornwall is a city in Eastern Ontario, Canada and the seat of the United Counties of Stormont, Dundas and Glengarry, Ontario. Cornwall is Ontario's easternmost city, located on the St...
Corporate governance
As a non-share capital corporation, Nav Canada has no shareholders. The company is governed by a 15 member board of directors representing the four stakeholder groups that founded Nav Canada. The four stakeholders appoint 10 members as follows:| Air carriers | 4 |
| General and business aviation | 1 |
| Federal government | 3 |
| Bargaining agents (unions) | 2 |
These 10 directors then elect four independent directors, with no ties to the stakeholder groups. Those 14 directors then appoint the president and chief executive officer who becomes the 15th board member.
This structure ensures that the interests of individual stakeholders do not predominate and no member group could exert undue influence over the remainder of the board. To further ensure that the interests of Nav Canada are served, these board
members cannot be active employees or members of airlines, unions, or government.
Rate Stabilization Fund
Early in its history the company established a rate stabilization fund, consisting of retained assets. This fund was used to provide funding for the company during periods of lower revenues caused by seasonal and other fluctuations of air traffic and hence the customer fees that primarily fund the company. The fund was generally kept at $80–100 million, except during the early 2000s recessionEarly 2000s recession
The early 2000s recession was a decline in economic activity which occurred mainly in developed countries. The recession affected the European Union mostly during 2000 and 2001 and the United States mostly in 2002 and 2003. The UK, Canada and Australia avoided the recession for the most part, while...
when it was drawn down to zero and later replenished. In 2008 the company announced that the fund had been reduced to $4M "due to variances from planned results".
At the end of the company's third fiscal quarter, 31 May 2009 the rate strabilization fund stood with a recoverable asset balance of $27 M.
2008–09 Recession
Nav Canada felt the impact of the late-2000s recession in two ways: due to losses in its investments in asset-backed commercial paper (ABCP) and because of falling air traffic levels.In an attempt to provide stable income for the company Nav Canada invested heavily in ABCP. On 13 August 2007 the company announced that certain third-party sponsors of these instruments had become "illiquid" and on 16 August 2007 the company joined with other companies in the Montreal Accord, forming a Pan Canadian Investors Committee, to try to solve the problem. On 12 January 2009 final Ontario Superior Court of Justice
Ontario Superior Court of Justice
The Superior Court of Justice is the superior court of general jurisdiction for the Province of Ontario, Canada. It is the successor to the former Ontario Court of Justice , and was created on April 19, 1999...
approval was granted to restructure the debt as new notes that will mature in several years.
As a result of these proceedings Nav Canada wrote off a total of $164M in ABCP losses by January 2009. In July 2009 the company indicated that $66M worth of "asset-backed commercial paper investments should be recoverable over the time that the Company continues to hold them."
During the recession commercial air traffic levels dropped as airlines reduced the number of flights scheduled in response to lower customer demand. The company reported that "Traffic during the third quarter (2009) was 8.1 per cent lower than in the third quarter of 2008." This resulted in lower revenues for Nav Canada with third quarter revenues reported as $284M, compared to $305M in the same period in 2008. Operating expenses were $241M, $9M lower than the same period in 2008 as the company reduced overtime and employee numbers to contain costs, despite large settlements in union contracts. The company expenses were $2M higher than revenues in the third quarter of 2009, but were offset by use of the rate stabilization account.
In dealing with the recession as well as the investment losses, CEO John Crichton said in July 2009:
Results for the company's fiscal year 2009, which ended on 31 August, showed that air traffic was down. The company reported: "Traffic for the complete fiscal year 2009 was 6.0 per cent lower than 2008, or 5.8 per cent on a normalized basis given that February 2009 had one less day than February 2008 due to the leap year".