Westjet 2005 Annual Report Download - page 24

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22
YOUR OWNERS’ MANUAL
Navigational Charges
Nav Canada and the Federal Aviation Administration
(FAA) in the US provide North American air traffic control
services. The costs of these services are predominantly
driven by size of aircraft and distance flown, and are
administered on a per-flight basis.
On a CASM basis, our air navigational charges have
continued to decline. In 2005, CASM dropped by approximately
one percentage point as a result of the dilutive effects of
our increased stage length. On a per-departure basis,
costs rose almost 7.0% in 2005 over 2004 compared to the
13.6% increase we experienced in 2004 over 2003. Current
cost-per-departure increases can be attributed to our
increased use of larger Next-Generation 737 aircraft and
our increasing average stage length. The decelerating rise
in our annual cost-per-departure increases is directly
attributable to the absence of increases in Nav Canada fees
such as those experienced in each of the previous three
fiscal years. We expect this trend to continue as Nav Canada’s
financial situation has now stabilized.
Matthew Kenley
Customer Service Agent
On a CASM basis, our air
navigational charges have
continued to decline.