CANADA'S Government has signed the agreement to transfer the country's air-navigation system to a new corporation, Nav Canada, for a purchase price of C$1.5 billion ($1.1 billion). Transfer of all air-traffic-control (ATC) assets is scheduled for 1 July, subject to the passage of enabling legislation by the Canadian parliament.
Some 6,400 federal employees will be transferred to Nav Canada with equivalent pay and benefits. To ensure continued safety of the Canadian ATC system, Transport Canada is to establish regulations and standards for the new non-profit corporation and will monitor its operations to ensure compliance.
The Canadian Government announced, its intention to privatise ATC services, in 1995 and by December, had reached an agreement in principle with the new corporation, which is owned by airlines and other Canadian users of the airspace system.
Changes in services now provided in northern and remote regions will require the consent of affected users. Nav Canada and Industry Canada are to agree a policy on procurement of products and services from Canadian contractors - provided that they are competitive with those offered by foreign firms.
Source: Flight International
