airline nav canada fees going up

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Nav Canada seeks higher service fees
Last Updated Thu, 15 May 2003 16:01:33

OTTAWA - Nav Canada said Thursday it needs to increase the fees it charges
by an average of 6.9 per cent to cope with the downturn in air traffic and
bad debt expenses.  The non-profit company that operates the country's air
navigation system said the fee hike will increase the cost of a one-way
ticket from Toronto to Ottawa by 65 cents. The cost of a
Vancouver-to-Montreal one-way flight would go up by $1.28.  "Unfortunately,
we face further traffic declines due to the war in Iraq and SARS," Nav
Canada president and CEO John Crichton said.  "And anticipating an
accumulated shortfall of $176 million after two years, we've exhausted our
ability to help ease the burden of the downturn on our customers," he
said.  The higher fees Nav Canada is seeking likely won't sit well with the
country's airlines, which have been seeking breaks on the fees to help them
ride out the downturn in the travel industry.  The new charges are slated
to come into effect on August 1, with annual and quarterly charges to be
implemented on March 1, 2004. The proposal is subject to a 60-day
consultation period.

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