Nav Canada to reduce air traffic control fees by 7.6%
Nav Canada will be making it cheap for airlines using its air traffic control service when taking off and landing at Canadian airports.
The company has announced its decision to proceed with rate revisions that will see customer service charges lowered by 7.6 percent on average, for customer savings of approximately $100 million in the fiscal year September 1 2016 – August 31 2017.
Nav Canada is the country's private sector civil air navigation service provider. With operations from coast to coast to coast, Nav Canada provides air traffic control, flight information, weather briefings, aeronautical information services, airport advisory services and electronic aids to navigation.
The revisions to charges were subject to consultation that began in April. The revisions include changes to base rates for all air navigation services on an ongoing basis as well as the introduction of an additional temporary one-year rate reduction.
The 7.6 percent average reduction in fiscal 2017 results from the combined effect of the base rate changes coupled with the temporary reduction. In addition to the anticipated customer savings of $100 million in fiscal 2017, savings of approximately $50 million are expected during fiscal 2018, when the temporary reduction is no longer in effect.
“These changes enable us to meet our cost recovery mandate by aligning our revenues with our costs going forward,” said Neil Wilson, President and CEO. “Strong traffic growth, coupled with cost controls and targeted strategic investments in the air navigation system, have put us in a position to deliver savings to customers while increasing our planned investments in people, technology and facilities.”
The changes in the base rates will result in an average reduction of 3.9 percent on an ongoing basis. In a move to better align charges with costs, the new base rates include a one per cent increase for Terminal services, a 7.3 percent reduction for Enroute services including overflights, a 6.5 percent reduction in the North Atlantic charge, and a 13.7 percent reduction in the International Communications charge. Flat charges will be reduced by 0.5 percent.
The revisions will take effect on September 1, 2016, except for general aviation charges, which will be effective March 1, 2017, consistent with the revision cycle for these charges.
The additional temporary adjustment represents a reduction of 3.9 percent from the new base rates (an average of 3.7 per cent from current base rates) and will be applicable to all air navigation services during the company’s next fiscal year, beginning September 1, 2016. For general aviation charges, the temporary one-year reduction will take effect on March 1, 2017.
Nav Canada service charges are levied on airlines and other owners and operators of aircraft to recover the costs of providing air navigation services.
Read the July 2016 issue of Business Review USA & Canada magazine
Marketing matters: from IBM to Kyndryl
Prior to joining Kyndryl as Chief Marketing Officer, Maria had a 25-year career at IBM, most recently as the tech giant’s CMO where she oversaw all marketing professionals and activities across North America, Canada and Latin America. She has held senior global marketing positions in a variety of disciplines and business units across IBM, most notably strategic initiatives in Smarter Cities and Watson Customer Engagement, as well as leading teams in services, business analytics, and mobile and industry solutions. She is known for her work with teams to leverage data, analytics and cloud technologies to build deeper engagements with customers and partners.
With a passion for marketing, business and people, and a recognized expert in data-driven marketing and brand engagement, Maria talks to Business Chief about her new role, her leadership style and what success means to her.
You've recently moved from IBM to Kyndryl, joining as CMO. Tell us about this exciting new role?
I’m Chief Marketing Officer for Kyndryl, the independent company that will be created following the separation from IBM of its Managed Infrastructure Services business, expected to occur by the end of 2021. My role is to plan, develop, and execute Kyndryl's marketing and advertising initiatives. This includes building a company culture and brand identity on which we base our marketing and advertising strategy.
We have an amazing opportunity ahead at Kyndryl to create a company brand that will stand apart in the market by leading with our people first. Once we are an independent company, each Kyndryl employee will advance the vital systems that power human progress. Our people are devoted, restless, empathetic, and anticipatory – key qualities needed as we build on existing customer relationships and cultivate new ones. Our people are at the heart of this business and I am deeply hopeful and excited for our future.
What experiences have helped prepare you for this new opportunity?
I’ve had a very rich and diverse career history at IBM that has lasted 25+ years. I started out in sales but landed explored opportunities at IBM in different roles, business units, geographies, and functions. Marketing and business are my passions and I landed on Marketing because it allowed me to utilize both my left and right brain, bringing together art and science. In college, I was no tonly a business major, but an art major. I love marketing because I can leverage my extensive knowledge of business, while also being able to think openly and creatively.
The opportunities I was given during my time at IBM and my natural curiosity have led me to the path I’m on now and there’s no better next career step than a once-in-a-lifetime-opportunity to help launch a company. The core of my role at Kyndryl is to create a culture centered on our people and growing up in my career at IBM has allowed me to see first-hand how to prioritize people and ensure they are at the heart of progress in everything Kyndryl will do.
How would you describe your leadership style?
I believe that people aren't your greatest assets, they are your only assets. My platform and background for leadership has always been grounded in authenticity to who I am and centered on diversity and inclusion. I immigrated to the US from Chile when I was 10 years old and so I know the power and beauty that comes from leaning into what makes you different from other people, and that's what I want every person in my marketing organization to feel – the value in bringing their most authentic self to work every day. The way our employees feel when they show up for themselves authentically is how they will also show up for our customers, and strong relationships drive growth.
I think this is especially true in light of a world forever changed by the pandemic. Living through such an unprecedented time has reinforced that we are all humans. We can't lead or care for one another without empathy and I think leaders everywhere have been reminded of this.
What’s the best leadership advice you’ve received?
When I was growing up as an immigrant in North Carolina, I often wanted to be just like everyone else. But my mother always told me: Be unique, be memorable – you have an authentic view and experience of the world that no one else will ever have, so don't try to be anyone else but you.
What does success look like to you?
I think the concept of success is multi-faceted. From a career perspective, being in a job where you're respected and appreciated, and where you can see how your contributions are providing value by motivating your teams to be better – that's success! From a personal perspective, there is no greater accomplishment than investing in the next generation. I love mentoring younger professionals – they are the future. I want my legacy as a leader to include providing value in work culture, but also in leaving a personal impact on the lives of professionals who will carry the workforce forward. Finding a position in life with a job and company that offers me a chance at all of that is what success looks like to me.
What advice would you give to your younger self just starting out in the industry?
I've always been a naturally curious person and it's easy for me to over-commit to projects that pique my interest. I've learned over years of practice how to manage that, so to my younger self I’d say… prioritize the things that are most important, and then become amazing at those things.