NAV CANADA UPDATEPresentation to the ATAC AGM

November 2010

Rudy KellarVice President Operations

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• Safety • Performance• Service Updates

– AIS– NAV AIDs– Weather– Surveillance

• Technology Upgrades• International Recognition• Summary

Outline

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Loss of separation between two aircraft in IFR flight per 100,000 aircraft movements

• One of the lowest IFR to IFR loss records in the world

Safety

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Operating ResultsFiscal 2010 Compared to Budget ($Millions)

"BEFORE RATE STABILIZATION" Actual Budget Variance

RevenueCustomer service charges 1,115 1,141 (26)Other 39 41 (2)

1,154 1,182 (28) Operating Expenses

Salaries and benefits 721 (1) 758 (1) 37Non-salary operating expenses 212 233 21

933 991 58

Other Expenses

Interest expense 115 116 1 Depreciation & amortization 132 133 1

247 249 2 Other Income (Loss)

Fair value adjustments on investments 2 - 2Interest income 3 1 2

5 1 4

(21) (57) 36

(1) In order to align with other Canadian issuers and in anticipation of IFRS, reflects a change in accounting policy to capitalize (rather than expense) directly attributable internal labour and travel costs. This has amounted to $50 million for fiscal 2010.

Excess of expenses over revenue

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RATE STABILIZATION ACCOUNT($ millions))

$84$75

($116)

($32)

$38

$72

($19) ($20)

$4 $1

$92

$119

$7 $94 $118

-$150

-$100

-$50

$-

$50

$100

$150

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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$79 $98

$112

$92

"Notional" Balance of RSAAdd back non-credit portion of ABCP fair

value adjustment

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Traffic - Weighted Charging UnitsFY 2009/2010/2011

-

10

20

30

40

50

60

70

80

90

100

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

MONTH

WE

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(M

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FY 2009 FY 2010 FY 2011

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FISCAL YEAR-END HEADCOUNT

5,0384,941

5,189

5,3465,3805,4005,4165,443

5,420

5,266

5,692

6,124

6,300

5,250 5,264

4,500

4,750

5,000

5,250

5,500

5,750

6,000

6,250

6,500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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CIFER: Status Update 2010

• Programs that support improved efficiency and reductions in GHG emissions

5.4MMetric tons of GHG emissions avoided between 1997-2009

$1.4BCustomer fuel cost savings 1997-2009

Collaborative Initiatives For Emissions Reductions

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CIFER: Projected Benefits

8.0MMetric tons of GHG reductions forecast 2010-2016

$2.9BProjected fuel savings 2010-2016

13.4MMetric tons of GHG reductions over 20 years

$4.3BTotal customer savings 1997-2016

Collaborative Initiatives For Emissions Reductions

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AIS Production - 2010• NAV CANADA Designs

– Procedure Designs – 1025– Approach Minima Assessments – 167

• 3rd Party Quality Assurance - 143• Total Annual Design Production – 1335

– 625 Regulatory– 167 Unplanned Database changes– 100 reworked due to unclear requirements– 100 design reiterations due to customer feedback and

new concepts– 50 ‘what if’ assessments– 300 new procedures (internal and external customers)

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Production Increase• Business case approach for determining

production capacity– RNAV/RNP/LPV where feasible (Who is equipped

and where?)– Efficiency benefits

• Capacity will be adjusted using demand information from:– PBN Implementation Plan– FIR Business Plans– ATOCC PBN Coordination Group– Transport CANADA CARAC Working Group (PBN)

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TP 308 vs Approach Minima In Mountainous Terrain

• Loose and formal exceptions to TP 308 no longer allowed– Results in significantly higher approach minima

• TC open to solutions based on current set of rules (design criteria)

• Use of FAA TERPS 8260.54A now approved by TC– Allows combination of GNSS with ILS/LOC designs– GNSS used in the Missed Approach to provide lower

minima • Following Airports impacted (Pub Date):

– Kelowna (January 2011)– Terrace (March 2011)– Penticton (June 2011)– Kamloops (Under Analysis)

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WAAS Coverage

• WAAS coverage has increased

• Now captures more area of:– Northern Canada– East Coast

• Potential for more LPV procedures

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NAVAID Update - ILSFY 09/10 (replaced)

• Halifax Rwy 14• St. John’s Rwy 29• Toronto CAT III Rwy 05• St. Hubert Rwy 24R• Kitchener/Waterloo Rwy 26• Edmonton Intl. Rwy 30 & 02• Prince Albert Rwy 08• Prince George Rwy 15• Vancouver Rwy 26L GP &08R ILS• Kamloops Rwy 26 TGL• Campbell River Rwy 11 LOC

Note: LOC (BC) procedures replaced with RNAV

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NAVAID Update - ILS

FY 10/11 (planned replacement)

• Ottawa Rwy 07• North Bay Rwy 08• Iqaluit Rwy 35 (Possible LOC for Rwy 17)• Lourdes-de-Blanc-Sablon Rwy 05 LOC• St John Rwy 16• Prince Rupert Rwy 13• Calgary Rwy 16 & 34• Fort Nelson Rwy 03• Hay River Rwy 31• Thompson Rwy 05• Whitehorse Rwy 31L• Campbell River Rwy 11 GP• Calgary Rwy 10 (new ILS under discussion)

Note: LOC (BC) procedures replaced with RNAV

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Weather Cameras

• 64 Replacement and New Digital Cameras installed in FY 09/10

• 42 new sites planned for FY 10/11

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AWOS/LWIS• Legacy AWOS replaced at 16

sites in FY09/10• New AWOS installed at 5

sites:– Smithers– Stony Rapids– Oshawa (P)– Fredericton– Port Hawkesbury

• 17 Legacy replacements planned for FY 10/11

• LWIS installations planned for:– Arctic Bay– Dease Lake

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Wind Turbines• Wind farm development can impact

aviation safety

• Growth in wind power has the potential of poking numerous “holes” in primary radar coverage and impacting ability to provide associated air traffic services.

• Need to address cumulative impact from a systems perspective.

• Next generation surveillance will reduce concern. But we aren’t there yet…

• Working collaboratively with the Wind Turbine Industry on:

– Process

– Technical solutions