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The Next Level

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The Next Level THE NEXT LEVEL ANNUAL REPORT 2016 1996 2000 2004 An agreement is reached to transfer NAV CANADA invests to facilitate The six Northern Radar Program sites the civil ANS from the Government of increased use of fuel-saving polar routes – are completed, bringing surveillance Canada to NAV CANADA on November 1. which grow to over 15,000 flights per year to one million square kilometres of by 2016. Northern airspace. 1997 NAV CANADA announces plans to 2001 2005 invest in ANS renewal and reduce On September 11, airspace in the U.S. and The Moncton ACC is first to make the administrative costs. Canada shuts down due to the 9/11 attacks. transition to CAATS, our automated air Within hours, NAV CANADA lands more traffic system. 1998 than 1,500 aircraft without incident. The world's first “glass tower” opens 2006 at Toronto Pearson International Airport 2002 Naviair, the Danish ANSP, signs an agree- with touch-sensitive screens replacing NAV CANADA and NATS, the U.K. ANSP, ment for the installation of NAV CANADA paper flight data strips. sign an agreement leading to increased technology in the new Copenhagen collaborative development and deployment control tower. 1999 of technology. Customer service charges are set at full 2007 cost recovery as of March 1 and are 2003 Flights crossing North Atlantic airspace significantly lower than the Air Transpor- The control tower at Montreal- are now tracked by Canadian-designed tation Tax they replaced. Pierre Elliott Trudeau International Airport technology, the outcome of a successful is modernized. partnership between NAV CANADA and NATS. THE NEXT LEVEL 2008 2012 2016 NAV CANADA introduces its Just Culture NAV CANADA announces plans for Having invested over $2 billion since 1996, program, encouraging employees to investment in space-based ADS-B NAV CANADA announces a three-year, communicate openly on safety issues. through the Aireon joint venture with $500 million capital expenditure program Iridium Communications Inc., which will further investing in people, technology, 2009 enable worldwide aircraft surveillance. systems and facility upgrades. On January 1, ADS-B, combined with VHF 2013 A temporary 3.7 per cent, one-year rate communications, goes operational over reduction and a 3.9 per cent revision to base 250,000 square nautical miles of airspace Medium-Term Conflict Detection is rates is introduced. As of September 1, 2016, over Hudson Bay. implemented in high level airspace sectors rates are below the level at which they of Moncton, Montreal, Edmonton and were introduced in 1999, compared to a 2010 Winnipeg ACCs. 40+ per cent increase in the Consumer With its commissioning at the Vancouver Price Index over this time period. ACC and the Edmonton ACC's southern 2014 specialties, CAATS is now a national NAV CANADA completes the national Flight Data Processor, with automated rollout of Controller-Pilot Data Link handoffs across the country. Communications in Canadian domestic airspace at FL290 and above. 2 011 NAV CANADA receives IATA's Eagle 2015 Award for Best ANSP, its third to date The $66 million Weather Systems (the other two coming in 2001 and 2010). Upgrade Program concludes, modernizing and expanding the infrastructure and technology supporting our aviation weather services. NAV CANADA ANNUAL REPORT 2016 THE NEXT LEVEL CHANGE IS IN THE AIR We're excited to reveal to you our As part of our brand identity refresh, new NAV CANADA logo. It forms we have also established brand the cornerstone of our renewed attributes that are reflective of the brand identity, which we will be character of our Company. We are rolling out in 2017. This is the first proud to say that we are committed change to the NAV CANADA 'look' to safety; ready to reach high with since the Company was founded in our objectives; prepared to set new 1996. With twenty years of service, standards for achievement and it was time to present a fresh image excellence; eager to work collabo­ that celebrates our growth, reflects ratively with industry partners, and our renewed vision, and points the focused on finding inventive ways way as NAV CANADA takes “serving to deliver better service. a world in motion” to the next level. We share our new logo with pride A reinterpretation of our original and excitement. With two decades elliptical logo, our new NAV CANADA of exceptional service behind us, signature is less confined, allowing the we have matured as a Company – Company name to be more prominent and so too should our identity. It is a and impactful. As a nod to the past, true reflection of our commitment to the wing has been retained to remind modernize and show leadership in us of the Company's foundation, but the provision of safe, efficient and updated to offer a sense of upward cost­effective air navigation services. movement and advancement. We have also chosen a more modern and vibrant blue that reflects the hues in the sky, while radiating a sense of innovation, inspiration and trust. TABLE OF CONTENTS MESSAGE FROM THE CHAIR OF THE BOARD 4 MESSAGE FROM THE PRESIDENT AND CEO 8 NAV CANADA BY THE NUMBERS 16 OUR VISION, MISSION AND OBJECTIVES 17 STRATEGIC PLAN UPDATE 18 OUR PEOPLE 31 NATIONAL AWARD WINNERS 2016 32 CORPORATE GOVERNANCE 34 ADVISORY COMMITTEE REPORT 45 ADVISORY COMMITTEE 47 CONSOLIDATED FINANCIAL STATEMENTS 48 OFFICERS AND OTHER INFORMATION 116 NAV CANADA ANNUAL REPORT 2016 THE NEXT LEVEL 3 MESSAGE FROM THE CHAIR OF THE BOARD MARC COURTOIS It is a great pleasure to introduce While assigning aircraft to their the 2016 NAV CANADA Annual Report optimum flight level is a key function in this, our 20th year. of NAV CANADA's air navigation services (ANS), keeping the Company The title of this year's report, The on course at its optimum level is the Next Level, was selected because it focus of all our planning and execution. so aptly brings together two concepts that go hand in hand in our business – In my four years as Chair, I have flight safety and performance. developed a deep appreciation for NAV CANADA's culture of continuous Flight levels are used in air traffic improvement and its drive to be control to ensure a safe vertical always moving forward in safety, distance is maintained between service and efficiency. aircraft. When the pilot of an aircraft requests to move to the next level, From an innovative idea in the early or an air traffic controller offers a 1990s, to NAV CANADA's creation as change in flight level, it is most a private corporation and its purchase often to help improve efficiency of Canada's air navigation system in and performance. 1996, to our three Eagle Awards as world's best Air Navigation Service Provider (ANSP), this Company has always strived to reach the next level and set the pace for the industry. 4 SAFETY FIRST We benchmark our safety data Our safety record has been among against other ANSPs and our past the best for more than a decade. Through all the changes of the past performance. NAV CANADA is an Standing behind this accomplishment 20 years, our focus on safety has active member of CANSO, the Civil are dedicated and skilled people, remained a constant, driven by a Air Navigation Services Organisation, backed by our strong safety culture desire to continuously improve and we have participated in CANSO's and working in close collaboration and advance. Performance Benchmarking Report with our partner organizations around for more than 10 years. the world. The Company has an exemplary safety record. We continued this We are taking a lead role in CANSO's record in fiscal 2016, as measured Standard of Excellence in Air Navigation KEY TO OUR by a key safety benchmark – the rate Services­Safety (SEANS­Safety) of IFR­to­IFR losses of separation program, which is designed to assess SUCCESS per 100,000 aircraft movements. the maturity of an ANSP's safety People have always been the key to As of August 31, 2016, our five­year management system (SMS). We are NAV CANADA's advancement to new moving average was 0.69 per also working with the CANSO group levels. Their role is reflected in our 100,000 movements – well within that is developing a system for sharing newly revised mission statement, the top decile of major ANSPs. best safety practices among members. which both reflects our determination to be a world leader and emphasizes our commitment to our employees. You can read our new mission statement on page 17 of this report. NAV CANADA ANNUAL REPORT 2016 THE NEXT LEVEL 5 Employee engagement continues BUSINESS With the notional balance of the to move to the next level, and this is rate stabilization account growing, reflected in the Company's annual AND FINANCE the Company implemented rate awards program, Points of Pride. reductions at the beginning of fiscal Once again this year, it was my Air traffic for fiscal year 2016 was 2017 that lowered customer service privilege and pleasure to present 4.1 per cent higher than in 2015, charges by an average of 7.6 per cent. Chairman's Awards to some of our and the Company achieved a strong These reductions will save customers outstanding employees at National financial performance, ending the approximately $105 million in fiscal Awards Night 2016. year with a positive balance in its year 2017. rate stabilization account. The 21 winners of the 2016 Chairman's Awards are Jim Daher, Strong traffic growth, practiced cost Roger Morrell, André Bérubé, control and targeted strategic invest­ James Carr, Remington Danford, ments in the ANS have combined Bénédicte Latimer, Bob Miller, to allow us to deliver savings to Cindy Westphal, Allen Mitchell, customers while increasing planned Matthew Collishaw, Brent Dowding, investments in people, technology Kent Fulton, Pawel Kisielewski, and facilities.
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