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Nav Canada Reports Another Year-end Net Loss
Nav
Canada, the private company that operates the country’s ATC system, reported
a net loss of $584 million in Fiscal Year 2020 versus a $100 million net loss
in FY2019. “This is reflective of the material decrease in revenue due to
significantly lower air traffic,” according to the company’s financial
results for the year ending August 31. “The
Covid-19 pandemic and the resulting economic contraction has had, and is
expected to continue to have, a significant negative impact on global air
traffic and on the aviation industry,” Nav Canada said. Until air travel
fully returns to pre-Covid-19 levels, reduced air traffic activity will
continue to have a “negative impact on the company’s operations and
revenues.” Nav
Canada has thus taken several actions to adjust to the pandemic, including
the elimination of 720 jobs—14 percent of the company’s workforce—and
increasing customer service charges. The new service charges have been in
effect since September 1, but WestJet, the second-largest Canadian air
carrier, has filed a rate appeal. Nav Canada and the airline are in the
process of considering mediation. Meanwhile, Neil Wilson, who has
served four years as Nav Canada’s president and CEO, plans to leave the
company on January 30. A specific reason for his departure was not disclosed. |
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