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Annual Report 2017-EN.Pdf We Are NAV CANADA ANNUAL REPORT 2017 We Are NAV CANADA ANNU A L REPO R T 2017 "I perform corrective and preventive maintenance or field modifications on electronic navigational aids used by NAV CANADA, helping to ensure the safety of the air navigation system." Marc Alivio Electronics Technologist St. John’s Control Tower For definitions of the abbreviations and acronyms that appear in this report, please refer to our glossary on page 48. Corporate Profile NAV CANADA is a private, not-for-profit company, established in 1996, providing air traffic control, airport advisory and aeronautical information services, and weather briefings for more than 18 million square kilometres of Canadian domestic and international airspace. The Company is internationally recognized for its safety record, and innovative technology used by ANSPs worldwide. OUR VISION, MISSION AND OBJECTIVES Our Vision Our Overarching NAV CANADA’s Vision is to be the world’s most Objectives respected ANSP: The Company will achieve its Mission by: • in the eyes of the public for our safety record; 1 Maintaining a safety record in the top decile • in the eyes of our customers for our fee levels, of major ANSPs worldwide; customer service, efficiency and modern technology; and 2 Maintaining ANS customer service charges, on average, in the bottom quartile (lowest charges) • in the eyes of our employees for establishing of major ANSPs worldwide by ensuring that the a motivating and satisfying workplace with growth in costs of providing air navigation services competitive compensation and challenging does not exceed the growth in revenues, thereby career opportunities. resulting in a decline in customer service charges over the long term; 3 Implementing and maintaining a modern, cost-efficient ANS technology platform in the Our Mission top quartile of major ANSPs worldwide; 4 Providing value to our customers by assisting To be a world leader in the provision of safe, in improving operational efficiency through efficient and cost-effective air navigation services innovative uses of technology and delivery of on a sustainable basis while providing a professional service, domestically and internationally; and fulfilling work environment for our employees. 5 Continuously striving to create a work environment which places NAV CANADA amongst the best employers in Canada; and ON THE covER: Isabelle Pouliot Tower Supervisor, 6 Identifying and, where feasible, introducing François Guiral (right) and Jeremie Yelle measurable benefits which contribute to the Air Traffic Controllers reduction of the environmental footprint of the Montreal Control Tower aviation industry. Annual Report 2017 1 NAV CANADA BY THE NUMBERS 18 million km2 4,800 employees of airspace across the country 12 million 1,000 flights aircraft movements in Gander oceanic annually airspace daily 40,000 9 countries customers using NAVCANatm (airlines, air cargo operators, air charter technology operators, air taxis, business and general in some of the world’s aviation, helicopter operators) busiest airports 5.1 B litres $170 million of customer fuel savings investment (1997-2015) in Collaborative Initiatives in NAV CANADA infrastructure for Emissions Reductions (CIFER) in fiscal 2017 47 employee-led environmental initiatives submitted to the NAV CANADA Grassroots Initiatives Sustainability Funding Program 2 We Are NAV CANADA Air Traffic Activity in Weighted Charging Units Polar Flights by Calendar Year Fiscal Year ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ , , , , , , , , ’ ‘ , , , , , , Source: NAV CANADA polar statistics, number of flights through designated Russian polar fixes Weighted Charging Units (Millions) and Canadian Domestic Controlled Airspace. Rate of IFR-IFR Losses of Separation per , Movements (-Year Moving Average) . History of NAV CANADA Rate Changes () versus Consumer Price Index (­) CONSUMER PRICE INDEX Note Index to to Index NAV CANADA RATES . Average changes since charges were fully implemented on March , . NAV CANADA announced a further refund of $ M, equivalent to a reduction of .% in rates. Consumer Price Index - Growth assumed to be % for and beyond. This is in addition to the . % rate reduction effective September , which effectively continues the . % temporary one-year rate reduction that expired on August , . Annual Report 2017 | NAV CANADA by the Numbers 3 "I provide airport advisory services to assist pilots in arriving and departing safely and efficiently at an airport that can quickly become busy and complex." Chris Morrison Flight Service Specialist Kamloops Flight Service Station 4 We Are NAV CANADA NAV CANADA ANNUAL REPORT 2017 TABLE OF CONTENTS 6 MEssaGE FROM THE CHAIR OF THE BoaRD 9 MEssaGE FROM THE PRESIDENT AND CEO 16 CORPORatE HIGHLIGHts 19 STRatEGIC PLAN UpdatE 28 IN OUR COMMUNITIES 30 Points OF PRIDE AwaRD RECIPIEnts 35 CORPORatE GovERNANCE 44 AdvisoRY COMMITTEE 47 OFFICERS AND OTHER InfoRmation 48 GLossaRY Booklet Insert CONSOLidatED FINANCIAL StatEMEnts 5 MARC COURtois MESSAGE FROM THE CHAIR OF THE BOARD It is a great pleasure to once again be able to introduce NAV CANADA’s Annual Report for 2017. In my five years as Chair, I have had the honour of watching the Company progress; working collaboratively with our customers and stakeholders to move the bar on safety and efficiency. The title of this year’s report, “We Are NAV CANADA,” It is through their exceptional work that NAV CANADA was chosen to reflect the importance of each and has become well known in the aviation industry for every member of the NAV CANADA workforce in moving its record in safety, innovation, collaboration and that bar higher. It is inspiring to watch our talented performance. These attributes are reflected in the employees, each in different roles, come together to achievements related throughout this report. make this Company a success year after year. 6 We Are NAV CANADA Safety Record NAV CANADA is responsible for facilitating the safe as measured by the rate of IFR-to-IFR losses of movement of thousands of aircraft and their passengers separation, a key safety benchmark. Our five-year as they travel through Canadian-controlled airspace moving average was 0.68 per 100,000 aircraft each and every day. movements, improving from 0.69 in 2016, and maintaining our position in the top decile of major As such, safety has always been at the forefront of the ANSPs for safety performance. Company’s vision, mission and overarching objectives, and over the past decade we have achieved a safety Canada’s aviation environment is constantly changing record among the best in the world through our as new technology is introduced, customer operations shared commitment to continuous improvement. change, and domestic and international standards are drafted and amended. In order to provide the In evaluating NAV CANADA’s safety performance, safest aviation environment possible, NAV CANADA we benchmark our safety data against other ANSPs continues to identify risks, and address them in and our past performance. In 2017, NAV CANADA collaboration with our stakeholders. improved its safety record from the previous year, Business and Finance Air traffic for fiscal 2017 was 5.1 per cent higher than by an average of 3.5 per cent and also implement in fiscal 2016, helping NAV CANADA achieve another a temporary one-year rate reduction of 0.4 per cent strong financial performance. for fiscal 2018. With the temporary rate reduction that was set to expire at the beginning of fiscal 2018, The Company implemented rate reductions at the rate reductions will keep, on average, overall rates the beginning of fiscal 2017 that saved customers unchanged from the previous year. approximately $105 million. The Company will also reimburse its customers Due to its continuing strong financial performance, approximately $60 million in a one-time 4.6 per cent the Company announced in August that it would rebate in fiscal 2018. decrease existing base rates charged to its customers Investing in the ANS As part of our program to get to the next level, Much of the capital expenditure through fiscal 2019 will we increased capital expenditures to $171 million in focus on the expansion, refurbishment or replacement fiscal 2017, up from $136 million in fiscal 2016. We will of ACCs, control towers and FSS facilities, upgrades be maintaining this level of capital expenditures to power systems, investments in air traffic in 2018 and 2019. management technology and new business systems, and modernization of critical elements of the This investment directly impacts our employees’ work communications, navigation and surveillance environments by providing more modern workspaces infrastructure, including continued investment and increasingly advanced technology. in space-based ADS-B. Annual Report 2017 | Message from the Chair of the Board 7 Aireon, our joint venture, will use satellite-based orbit, each carrying its Aireon space-based ADS-B ADS-B to deliver real-time aircraft position updates payload. This brings the total number of satellites in anywhere ADS-B equipped aircraft fly, including over orbit to 30. The remaining Iridium NEXT satellites will oceans and remote regions, significantly improving be deployed in six separate launches scheduled late safety and efficiency. in 2017 and in 2018. The satellite network is scheduled for completion in 2018. In fiscal 2017, there were two successful launches delivering another 20 Iridium NEXT
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