Civil Air Navigation Services Commercialization Act

Marginal note:Charging principles

• 35 (1) The Corporation shall observe the following principles when establishing a new charge for air navigation services or revising an existing charge:

  • (a) charges must be in accordance with a methodology established and published by the Corporation that is explicit and that also includes the terms and conditions affecting charges;

  • (b) charges must not be structured in such a way that a user would be encouraged to engage in practices that diminish safety for the purpose of avoiding a charge;

  • (c) charges for the same services must not differentiate between domestic and international flights of air carriers;

  • (d) charges for the same services must not differentiate among Canadian air carriers or among foreign air carriers;

  • (e) charges must differentiate between the provision of services in relation to the landing and take-off of aircraft and the provision of services in relation to aircraft in flight, and must reflect a reasonable allocation of the costs of providing the services in those circumstances;

  • (f) charges in respect of recreational and private aircraft must not be unreasonable or undue;

  • (g) charges for designated northern or remote services and for services directed to be provided under subsection 24(1) must not be higher than charges for similar services utilized to a similar extent elsewhere in Canada;

  • (h) charges must be consistent with the international obligations of the Government of Canada; and

  • (i) charges must not be set at a level that, based on reasonable and prudent projections, would generate revenues exceeding the Corporation’s current and future financial requirements in relation to the provision of civil air navigation services.

• Marginal note:Value of the services

  (2) The charging methodology may recognize that the value of the services differs among users.

• Marginal note:Application of principle

  (3) Where the Corporation’s charging methodology recognizes the value of the services and aircraft weight is used as a measure of the value of the services, the principle referred to in paragraph (1)(a) is deemed not to have been observed if aircraft weight is taken into account either directly proportionally or greater than directly proportionally.

• Marginal note:Meaning of weight

  (4) For the purpose of subsection (3), weight, in relation to an aircraft, means the maximum permissible take-off weight specified in the aircraft’s certificate of airworthiness or in a document referred to in that certificate.

• Marginal note:Financial requirements

  (5) For the purpose of paragraph (1)(i), the financial requirements of the Corporation in relation to the provision of civil air navigation services include, without duplication, the Corporation’s

  • (a) costs incurred before the transfer date,

  • (b) operations and maintenance costs,

  • (c) management and administration costs,

  • (d) debt servicing requirements and financial requirements arising out of contractual agreements relating to the borrowing of money,

  • (e) depreciation costs on capital assets,

  • (f) financial requirements necessary for the Corporation to maintain an appropriate credit rating,

  • (g) tax liability,

  • (h) reasonable reserves for future expenditures and contingencies, and

  • (i) other costs determined in accordance with accounting principles recommended by the Canadian Institute of Chartered Accountants or its successor,

  to the extent that they relate to the provision of those services, less the amount determined in accordance with subsection (6).

• Marginal note:Deduction amount

  (6) The amount to be deducted for the purpose of subsection (5) is the aggregate of

  • (a) all grants, contributions and subsidies of a monetary nature received by the Corporation,

  • (b) all transition period payments pursuant to section 98,

  • (c) all interest income and investment income earned by the Corporation, and

  • (d) all profits earned by the Corporation, other than in respect of the provision of civil air navigation services.

• Marginal note:Flat-fee

  (7) Notwithstanding subsection (3), a category of users may be charged on a flat-fee basis so long as the charge is otherwise consistent with the charging principles set out in subsection (1).

• Marginal note:Application of paragraph (1)(c)

  (8) Paragraph (1)(c) does not apply in respect of charges for en route air traffic control services for the period during which an air transportation tax is levied under the Excise Tax Act.