Civil Air Navigation Services Commercialization Act (S.C. 1996, c. 20)

PART IIICharges for Air Navigation Services

Right to Impose Charges

Marginal note:Charges for availability or provision of services

• 32 (1) The Corporation may impose charges on a user for the availability or provision of air navigation services provided by the Corporation or a person acting under the authority of the Minister of National Defence.

• Marginal note:Exception

  (2) No charge may be imposed under subsection (1)

  • (a) on a user who is a person acting under the authority of the Minister of National Defence; or

  • (b) on a user in respect of a state aircraft of a foreign country, unless the foreign country has been designated under subsection (3).

• Marginal note:Designation

  (3) The Governor in Council may, by order, designate any country to be a country in respect of which charges may be imposed for the purpose of subsection (2).

• Marginal note:Deeming

  (4) A charge imposed on a user under subsection (1) is deemed to be in respect of aircraft operated by that user.

• Marginal note:Restriction

  (5) No charge may be imposed under subsection (1) in respect of air navigation services provided by a person acting under the authority of the Minister of National Defence unless the Corporation provides and charges for similar services in respect of Canadian airspace or any other airspace in respect of which Canada has responsibility for the provision of air traffic control services.

• Marginal note:Telecommunications Act

  (6) The Telecommunications Act does not apply in respect of any charges imposed by the Corporation pursuant to this Act.

Initial Charges

Marginal note:Initial charges

• 33 (1) Subject to this Act, the charges imposed by the Corporation on or after the transfer date for air navigation services shall be the charges that were imposed by the Minister immediately before the transfer date.

• Marginal note:Charges not new or revised charges

  (2) For the purposes of this Act, charges imposed under subsection (1) are not new charges for air navigation services or revised charges.

New and Revised Charges

Marginal note:New and revised charges

• 34 (1) Subject to this Act, the Corporation may, on or after the transfer date, establish new charges for air navigation services and revise existing charges, including a charge referred to in subsection 33(1).

• Marginal note:Where dollar amount changes

  (2) The Corporation is deemed to be revising an existing charge each time the dollar amount of the charge changes.

Charging Principles

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 Chartered Professional Accountants of Canada 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.

Changing Charges

Marginal note:Notice of new or revised charge

• 36 (1) Where the Corporation proposes to establish a new charge for air navigation services or revise an existing charge, it shall give notice of the proposal in accordance with this section.

• Marginal note:Contents of notice

  (2) The notice must

  • (a) set out the particulars of the proposal;

  • (b) specify that a document containing more details about the proposal, including a justification for the proposal in relation to the charging principles set out in section 35, can be obtained from the Corporation on request; and

  • (c) specify that persons interested in making representations in writing to the Corporation about the proposal may do so by writing to the address set out in the notice.

• Marginal note:How notice is to be given

  (3) The Corporation shall

  • (a) send, by mail or by electronic means, a copy of the notice to

    • (i) representative organizations of users whose members will, in the opinion of the Corporation, be affected by the new or revised charge, and

    • (ii) every user and other person who has, at least 10 days before, notified the Corporation of their desire to receive notices or announcements under this Act, and

  • (b) post an electronic version of the notice in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet,

  and, after having done so, the Corporation shall file a copy of the notice with the Agency.

Marginal note:Announcement of new or revised charge

• 37 (1) Before imposing a new charge for air navigation services or a revised charge, other than a new or revised charge approved by the Minister under section 39, the Corporation shall make an announcement in accordance with this section.

• Marginal note:Charge may be different

  (2) A new or revised charge set out in an announcement may be different from the charge as proposed in the notice required under section 36 if, based on reasonable and prudent projections, the total annual revenue to be generated by the announced charge is no greater than the total annual revenue to be generated by the charge as proposed in the notice.

• Marginal note:Contents of announcement

  (3) The announcement must

  • (a) set out the new or revised charge;

  • (b) specify when the new or revised charge will become effective;

  • (c) contain a statement that the charge may be appealed on application to the Agency; and

  • (d) where subsection (2) applies,

    • (i) specify that the charge set out in the announcement is different from the charge as proposed in the notice required under section 36,

    • (ii) specify that the total annual revenue to be generated by the charge set out in the announcement is no greater than the total annual revenue that would have been generated by the charge as proposed in the notice, and

    • (iii) state that details in relation to the Corporation’s projection of the revenues referred to in subparagraph (ii) can be obtained from the Corporation on request.

• Marginal note:How announcement is to be made

  (4) The Corporation shall

  • (a) send, by mail or by electronic means, a copy of the announcement to

    • (i) representative organizations of users whose members will, in the opinion of the Corporation, be affected by the new or revised charge, and

    • (ii) every user and other person who has, at least 10 days before, notified the Corporation of their desire to receive notices or announcements under this Act, and

  • (b) post an electronic version of the announcement in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet,

  and, after having done so, the Corporation shall file a copy of the announcement with the Agency.

• Marginal note:Time for making announcement

  (5) The announcement may only be made after 60 days have expired since the day the notice required under section 36 was filed with the Agency.

Marginal note:When charge can be imposed

38 The Corporation may only impose a new charge for air navigation services or a revised charge, other than a new or revised charge approved by the Minister under section 39, after 10 days have expired since the day the announcement in relation to the new or revised charge was filed with the Agency.

Special Approval of Charges

Marginal note:Submission of charge to Minister

• 39 (1) At any time during the two years immediately after the transfer date, the Corporation may, after having

  • (a) filed with the Agency a notice under section 36 of a proposed new charge for air navigation services or a revised charge, and

  • (b) considered any representations made to it,

  submit the proposed new or revised charge to the Minister for the Minister’s approval.

• Marginal note:Copies of representations

  (2) On submitting a proposed new or revised charge to the Minister, the Corporation shall provide the Minister with a copy of all written representations made to it concerning the proposed new or revised charge.

• Marginal note:Determination by Minister

  (3) After receiving a submission in respect of a proposed new or revised charge, the Minister shall, within 30 days, determine whether the charge is consistent with the charging principles set out in paragraphs 35(1)(a) to (h), taking into account subsection 35(8).

• Marginal note:Where Minister is satisfied

  (4) Where the Minister determines that a proposed new or revised charge is consistent with the charging principles set out in paragraphs 35(1)(a) to (h), taking into account subsection 35(8), the Minister shall approve the proposal and immediately notify the Corporation in writing of the approval.

• Marginal note:Corporation may modify proposal

  (5) Where the Minister determines that a proposed new or revised charge is not consistent with the charging principles set out in paragraphs 35(1)(a) to (h), taking into account subsection 35(8), the Minister shall, immediately, in writing,

  • (a) inform the Corporation of the Minister’s determination, and

  • (b) specify the reasons why the proposal is not consistent with those charging principles in sufficient detail to enable the Corporation to modify its proposal so as to make it consistent with those charging principles without affecting projected total annual revenues

  and, if the Corporation modifies its proposal to the Minister’s satisfaction, the Minister shall approve the modified proposal and immediately notify the Corporation in writing of the approval.

Marginal note:Announcement of approved charge

• 40 (1) Before imposing a new or revised charge that the Minister has approved under section 39, the Corporation shall make an announcement in accordance with this section.

• Marginal note:Contents of announcement

  (2) The announcement must

  • (a) set out the new or revised charge; and

  • (b) specify when the new or revised charge will become effective.

• Marginal note:How announcement is to be made

  (3) The Corporation shall

  • (a) send, by mail or by electronic means, a copy of the announcement to

    • (i) representative organizations of users whose members will, in the opinion of the Corporation, be affected by the new or revised charge, and

    • (ii) every user and other person who has, at least 10 days before, notified the Corporation of their desire to receive notices or announcements under this Act, and

  • (b) post an electronic version of the announcement in a location that is generally accessible to persons who have access to what is commonly referred to as the Internet,

  and, after having done so, the Corporation shall file a copy of the announcement with the Agency.