10
TRANSPORTATION INFRASTRUCTURE
Air Transportation Infrastructure
Air Navigation System
NAV Canada, a private, non-share capital corporation, became
the owner and operator of Canada's Air Navigation System (ANS),
when the system was transferred from the federal government on
November 1, 1996. The system comprises seven Area Control Centres
(ACC), one terminal control unit, 43 control towers, 77 Flight
Service Stations and 67 maintenance centres, as well as more than
1,400 ground-based navigational aids. NAV Canada provides air
traffic control services, flight information, weather briefings,
airport advisories and electronic aids to navigation.
Air Navigation Operations
In 2000, the Air Navigation System supported approximately
3.75 million Instrument Flight Rules (IFR) flight plans, 340,000
overflights of Canadian airspace and 320,000 oceanic flight movements.
Over five million flight movements were handled by NAV Canada's
Control Towers and over 1.2 million movements by Flight Service
Stations. Figure 10-8 illustrates the distribution of aircraft
arrivals and departures by airport category.
At the end of 2000, NAV CANADA employed 1,828 air traffic controllers
(not including trainees) and 781 operational Flight Service Specialists
and was continuing to invest heavily in the training of additional
controllers and specialists. The number of control towers in Canada
has remained constant since the conversion of North Bay's tower
to a Flight Service Station in March 1999. The number of Area
Control Centres has been constant since 1996. Table 10-30 lists
the number of control towers, area control centres, terminal control
units and flight service stations in Canada from 1996 to 2000.
System Improvements
NAV Canada completed a number of projects to improve operations
in 2000. The Polar Routes Feasibility Study was one particular
initiative that was undertaken to enhance service to customers.
In conjunction with the Federal Aviation Authority of Russia (FAAR),
NAV Canada demonstrated that significant savings in time and money
could be obtained by flying routes directly over the North Pole
region. To accommodate these routes, NAV Canada intends to invest
$7 million to modify the Air Navigation System in Canada's north,
primarily the communications infrastructure. Assistance will also
be provided to the Federal Aviation Authority of Russia to secure
investment to update its air navigation system, and provide language
training for Russian controllers.
NAV Canada undertook a number of other notable projects in
2000, some of which are yet to be completed, including:
- Completion of the IFR study, which will result in changes
to national sectorization and airspace assignment between Area
Control Centres.
- Expansion of the Reduced Vertical Separation Minima sectors
within domestic airspace. When completed, this initiative will
increase the air navigation system's capacity and provide a greater
choice of routes.
- Implementation of a Converging Runway Display System at the
Calgary airport following an extensive in-house modification
of a system purchased from the Mitre Corporation. With this system,
runway capacity can be increased by up to 30 per cent under adverse
weather conditions.
- Introduction of a new Pre-Departure Clearance (PDC) system
at Toronto's international airport resulting in faster taxi and
take-off routines by reducing voice communication requirements
and frequency congestion.
- Deployment of an Integrated Information Display System/Extended
Computer Display System (IIDS/EXCDS) in Toronto, Winnipeg, Vancouver,
Calgary, Edmonton, Ottawa and Saskatoon towers to allow controllers
to manage electronic flight data online, replacing the traditional
method of using paper strips.
- Further deployment of the Radar Data Processing Situation
Display (RsiT) to Area Control Centres across Canada providing
enhanced functionality for IFR controllers.
- The successful factory and site acceptance testing of the
Canadian Automated Air Traffic System (CAATS), the world's first
automated flight data processor, providing integration of radar
and flight data on a single controller console.
Improvements to the navigation system in 2000 were not limited
to air traffic control. NAV Canada also continued to make progress
in its program to consolidate flight planning, en-route flight
information and advisory services in nine Flight Information Centres
(FIC), which will be located in Halifax, Quebec City, London,
Winnipeg, Edmonton and Kamloops, Whitehorse, Yellowknife and North
Bay.
Financial Performance
The Air Transportation Tax and transition-period payments by
the government to the NAV Canada were abolished in November 1,
1998. At this point, NAV Canada became fully responsible for recovering
its costs from customers in the form of service charges. The corporation's
service charge structure is in accordance with the Civil Air
Navigation Services Commercialization Act.
NAV Canada collects its revenues in the form of charges levied
on aircraft operators for the provision or availability of air
navigation services. The charging system consists of terminal
and en-route charges, overflight charges and oceanic charges.
Aircraft weighing three metric tonnes or less pay a flat annual
fee, while aircraft weighing greater than three metric tonnes
are charged on a per movement or daily basis.
A reduction in user fees, first introduced in 1999, continued
in 2000, saving customers approximately $50 million annually.
NAV Canada intends to maintain these reduced charges until December 31, 2001.
Figure 10-9 shows the fee sources for NAV Canada in percentage
terms for 2000.
For the fiscal year ending August 31, 2000, NAV Canada reported
$909 million in revenues, $703 million in operating expenses,
and $204 million in interest, depreciation and restructuring expenses.
This resulted in an excess of revenues over expenses of $2 million.
This compares with 1999 fiscal results of $933 million in total
revenues, $711 million in operating expenses, and $215 million
in interest, depreciation and restructuring expenses for a $7
million excess of revenues over expenses. Table 10-31 compares
NAV Canada financial results for 1999 and 2000.
Airports
Canada's approximately 1,800 aerodromes are divided into three
categories: water bases for float and ski planes, heliports for
helicopters, and land airports for fixed-wing aircraft. Aerodromes
refer to facilities registered with Transport Canada as aircraft
landing and take-off sites.
Most of Canada's commercial aviation activity takes place at
certified land airports, sites that because of their level of
activity or location are required to meet Transport Canada's airport
certification standards.
At the close of the year 2000, the Canada Flight Supplement
listed 1,109 sites in the land airport category. Of these, 352
were certified. Table 10-32 shows that 247 land airports
offered scheduled passenger service, while the remaining 862 were
available for other public and private uses. Thirty airports handle
over 94 per cent of all commercial air passenger traffic in Canada.
While many aerodromes are privately owned, the majority of
certified airports are publicly owned. Since the introduction
of the National Airports Policy (NAP) in 1994, the federal government
has been reducing its role in the management, operation and ownership
of airports.Note
5
The National Airports Policy established a system of core airports
known as the National Airports System (NAS). This system, which
includes 26 airports that handle at least 200,000 passengers per
year or serve provincial/territorial capitals, is considered essential
to Canada's domestic prosperity and international competitiveness.
While the federal government retains ownership of the NAS airports
under the National Airports Policy (except for the Whitehorse,
Yellowknife and Iqaluit airports, which have been transferred
to their respective territorial governments), it has been transferring
them to not-for-profit airport authorities by means of long-term
leases.Note
6 In 1994, the federal government started transferring
149 Transport Canada owned, operated or subsidized airports
to local operators.
In 2000, new airport authorities took over the operation of
the Halifax International and Jean Lesage International (Quebec
City) airports. By the end of the year, Transport Canada was directly
involved in the operation and management of three National Airport
System (NAS)airports. The location and divestiture status
of all the NAS airports is shown in Figure 10-10.
The 1994 National Airports Policy established, in addition
to the NAS, four other categories of Transport Canada owned, operated
or subsidized airports: regional/local (71 airports), small (31
airports), arctic (8 airports) and remote (13 airports).
Figures 10-11 and 10-12 show the divestiture status of the
regional/local, small and arctic airports at year end 2000.Note
7
As the divestiture program nears completion, and new airport
operators gain experience, more emphasis is being placed on the
Department's landlord role with respect to the NAS airports leased
to Airport Authorities. An enhanced lease monitoring program and
specialized training for lease managers is being implemented.
In approving the first transfers to airport authorities in
1992, the federal government required that a major review be carried
out after five years of operation. As such, in 1997, Transport
Canada began its review of the first four locally based airport
authorities to operate NAS airports. The LAA Lease Review Consultation
Report was released to stakeholders in 1999. The review continued
through 2000 and was broadened to include issues common to many
of the NAS airports. The overall conclusions remain the same as
reported in 1999: the government's decision to commercialize its
key airports was a sound one; the 1994 National Airports Policy
was a positive step; and some refinements should be considered
to ensure the continued effectiveness of the policy. In particular,
the review noted deficiencies in transparency relating to pricing
practices and financial reporting at some airport authorities.
The federal government is developing plans to address these findings.
Many of the NAS airports continued construction projects to
improve or expand facilities throughout 2000. Airport improvement
fees (AIFs) are being widely used as a means of funding these
capital projects. By the end of 2000, all of the airport authorities
operating NAS airports were either collecting airport improvement
fees or had announced intentions to do so. Table 10-33 lists the
airports that charge airport improvement fees, as well as when
they started and the amount collected in 1999.
Financial Performance
Airport Authorities' Revenues and Expenses
As noted above, airport authorities operate the majority of
NAS airports under leases with the federal government. They are
incorporated as not-for-profit organizations with no equity shareholders.
They fund their operations and improvements with revenues derived
from airport users.
In 2000, 16 airport authorities issued annual reports for the
full calendar year 1999. Table 10-34 presents the total results
and average ratios for the 16 airport authorities. With 74.1
million enplaned/deplaned passengers, these airport authorities
generated on average $14.81 per passenger in revenues and incurred
expenses of $11.35 per passenger in 1999. They spent a total of
$681 million in the acquisition of capital assets.
Transport Canada's Revenues and Expenses
As Transport Canada transfers airports to airport authorities,
its expenditures and revenues from the operation of airports are
declining. In 1999/2000, Transport Canada spent $155.6 million
on the operation of airports, while taking in revenues of $55.3
million. It also received an additional $214.5 million in
rent from eight NAS airport authorities in return for transferring
the airport business to airport authorities in the National Airport
System on the basis of the rent clauses in the leases with the
federal government.
Airport Capital Assistance Program
Since April 1995, Transport Canada has administered the Airport
Capital Assistance Program (ACAP) to help eligible non-National
Airport System airports finance capital projects related to safety,
asset protection and operating-cost reduction. To be eligible
for this funding, the airports must receive a minimum of 1,000
regularly scheduled passengers annually, meet airport certification
requirements, and not be owned by the federal government.
In 2000, the program approved 56 projects at 39 airports
for funding at an estimated total of $47.8 million. Appendix 10-1 lists the projects that
received funding approval under the program in 2000 by site and
province.
In June 2000, the Airport Capital Assistance Program was renewed
and its funding increased to $190 million over the next five years.
Program eligibility was expanded to accommodate the proposed Aircraft
Emergency Intervention Services (AEIS) regulations. As a result,
airports that will be required by regulations to provide AEIS
- and providers of these services - will be eligible to apply
for program funding to help cover specified costs associated with
implementation.
Table 10-35 summarizes ACAP expenditures by province from 1995/96
to 1999/2000.
Air Transportation Infrastructure
Appendix 10-1 Airports Capital
Assistance Program - Projects Approved in 2000
NOTES:
5
More detailed information on the National Airports Policy and
the status of airport divestitures is available on Transport Canada's
Web site at http://www.tc.gc.ca/en/airports.htm.
6
Five airports were transferred in 1992 (prior to the National
Airport Policy) to four airport authorities: Vancouver, Calgary,
Edmonton and Montreal (Dorval and Mirabel airports).
7
Thirteen remote airports currently receive federal assistance
and are not subject to transfer at this time. They are Sandspit,
B.C.; Fort Chipewyan, Alta.; Churchill, Man.; Norway House, Man.;
Moosonee, Ont.; Iles-de-la-Madeleine, Que.; Lourdes-de-Blanc-Sablon,
Que.; Kuujjuaq, Que.; Waskaganish, Que.; Chevery, Que.; Wemindji,
Que.; Schefferville, Que.; Eastmain River, Que.
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