by Cheryl Leschasin
Northern News Services

NNSL (Aug 11/97) - New fees for air traffic control could raise rates for Northern airlines by as much as 30 per cent.

"In our system, we're looking at a 15 to 20 per cent increase in all air services," said Gilbert Normandeau of First Air.

Normandeau said he knew of other airlines who estimated their rates would rise by as much as 25 per cent.

James Eetoolook, first vice-president of Nunavut Tunngavik Inc., went even further, saying a 30 per cent jump is a possibility.

New user charges for air navigation services will be based on factors such as aircraft weight and distance flown, rather than passenger load alone, as is the case now.

The new regulation will likely make little difference in southern Canada, where most airlines operate as passenger-only flights because the costs can be shared among an entire plane-load of passengers. In the end, costs for southern air carriers will remain roughly the same.

However, air carriers in the North are rarely, if ever full to capacity with passengers.

For example, said Normandeau, if an airline has 12 passengers flying from Yellowknife to Gjoa Haven in an aircraft that seats 40, the fees collected won't come anywhere near the charges that will be incurred.

Nunavut Tunngavik Inc. has joined forces with the Nunavut Chamber of Commerce and First Air to voice their distress over the fees.

All three said they believe if the charges take effect in the North there will be severe economic impact on Nunavut -- "far in excess of what is experienced elsewhere in the country," according to Eetoolook.

"This kind of drastic change in service costs will undermine the progress we've been making," he said.

They trio are also are urging Nav Canada to stand by the principle set out in its mandate that "charges for services in Northern or remote areas will not be higher than those for similar services in the South."

Before Nov. 1, 1996, air navigation services were provided by Transport Canada and funded mainly through an air transportation tax, which was paid by airline passengers.

The new fee system is an effort by Nav Canada, the company that now operates all Canadian air traffic control services, to fund itself independently by November 1998.

Beginning this Nov. 1, fees will be imposed on all aircraft that take off weighing more than 5,625 kilograms travelling within, from, out of or over Canada. Basically, that means everything larger than a Twin Otter will be subject to the fee.

Fees for aircraft lighter than 5,625 kilograms will be deferred until Nov. 1, 1998.

However, the new fee structure is not yet written in stone.

"Users of Canada's air navigation services and other stakeholders will be able to review and discuss this proposal and provide their suggestions and feedback," said Don Ingham, Nav Canada's treasurer and director of commercial relations, in a statement outlining the new fees.

The fees for large aircraft will be under review until the end of September, at which time a new fee schedule will be announced.

A review of fees for small aircraft will not take place until 1998.