Thank you, Mr. Chairman, and members of the committee. Thank you for inviting me to appear before the committee as part of your study on innovative transportation technologies.
I'm pleased to be here to speak of Nav Canada's strong track record in this area and the technologies that we consider to be the most promising game changers in our industry.
Since assuming ownership of Canada's civil air navigation system in November 1996, our aggressive modernization program has been a major factor behind our ability to improve safety and service. In fact, we estimate that when you examine the impact of all the technology and service initiatives we have launched since 1997, customers have saved $1.7 billion in fuel costs, a number that will grow to $7 billion by 2020. This in turn will generate related reductions in greenhouse gas emissions of 20.6 million metric tonnes.
Because of our structure, we are able to make technological investment decisions quickly, and to get investments in technology operational and delivering benefits for customers and the environment. One of the biggest benefits resulting from privatization has been the speed of response and our ability to stay ahead of the innovation curve, especially in the areas that directly affect our customers.
Today I would like to talk about three technologies that I see as crucial to improving the air navigation system and service to our customers. The first is performance-based navigation, or PBN. PBN refers to enhanced satellite-based navigation that includes strict specifications for functionality and accuracy. The application of PBN in the design of departure and arrival procedures, airways, and airspace will help Nav Canada to improve safety capacity and airport accessibility, while at the same time providing for more efficient aircraft operations in terms of reduced fuel being burned and greenhouse gas emissions. It will also reduce the costs of maintaining an extensive network of ground-based navigational aids. In deploying PBN, a great deal of work involves collaboration with customers regarding equipage, and with Transport Canada in relation to regulatory changes.
The evolution of the system requires that regulations be in place dealing with design standards, onboard equipment, and training requirements. I am convinced that this technology has a great deal of potential, especially once we achieve the tipping point with respect to rates of customer equipage.
We are working closely with our customers to identify where the business case exists for implementation in the many different operating environments across the 18 million square kilometres of airspace for which we are responsible. In line with this approach, we are introducing PBN in phases to enable aircraft operators to equip in accordance with the navigation specifications of the airspace in which they intend to fly.
The second game changer that offers a huge payback to our customers is related to advancements in surveillance technologies. Traditionally, air traffic controllers have used radar to monitor aircraft movements. Now there are exciting new alternatives such as wide area multilateration, automatic dependence surveillance broadcast or ADS-B, and even video surveillance. These technologies can be more cost-effective and more suitable for specific types of deployment.
We have invested heavily in ADS-B, a cost-effective alternative to radar that provides surveillance of appropriately equipped aircraft. We first implemented ADS-B in the area over Hudson Bay three years ago. Previously, this vast stretch of airspace, which lies at a crossroads of polar flights and international traffic from North America to Europe, had been managed through less efficient procedural control methods.
Today 15 ADS-B ground stations installed in Ontario, Quebec, Manitoba, Newfoundland and Labrador, Nunavut, and Greenland provide an additional 4 million square kilometres of surveillance coverage of domestic and international oceanic airspace managed by Nav Canada. This has resulted in major gains in customer service, allowing for the safe reduction of separation between equipped aircraft, from 80 nautical miles to five nautical miles, as well as more flexible, fuel-saving routes. Over 1,000 aircraft from 40 airlines are equipped and certified for ADS-B operations in Canada, and the number continues to grow.
Nav Canada is also working with Searidge Technologies, an Ottawa-based company, on promising video surveillance technology called IntelliDAR. This technology has the potential to improve safety and efficiency at airports by providing air traffic controllers with improved situational awareness of aircraft, vehicle, and other movements on the ground.
While advances in surveillance give us a broader picture of who is flying where in our airspace, our improved automated weather observation systems, AWOS, are casting a wider eye on the skies, and giving pilots a more comprehensive weather picture. With flying decisions being so dependent on the weather, AWOS also makes our top-three list of critical enablers.
Although these systems have been in existence for decades, recent enhancements have improved the accuracy and reliability of weather reporting across the country, and the addition of weather cameras allows pilots to use the Internet to see for themselves the actual weather conditions at their destination or alternate airport.
We are currently replacing older AWOS and expanding the use of this technology. As a result, Nav Canada is able to provide additional weather information around the clock. This has the potential to improve safety and allow for more efficient operations, particularly in northern and remote areas.
Nav Canada's adoption of new technologies such as PBN, ADS-B, and the new AWOS go a long way toward addressing specific challenges in our industry, namely: improving safety and efficiency in increasingly congested skies and airports; strengthening operational capabilities in the north; improving the cost-effectiveness of our customer's operations; and reducing aviation-related greenhouse gas emissions.
Our operational personnel manage 12 million aircraft movements annually. I would be remiss, therefore, if I did not mention a few of the emerging air traffic management technologies that help them in this work. A recent example is the introduction of controller-pilot data link communications in Canadian domestic airspace. It's a means of direct electronic communication, or text messaging, so to speak, between pilots and controllers. Because there is no need for voice communication and therefore read-back/hear-back of instructions, there is less chance of pilot-controller communication error.
We are also equipping controllers in our area control centres with a feature called minimum safe altitude warning. This involves the addition of electronic terrain maps to our flight management system so controllers receive alerts when an aircraft's projected flight path places it in a predicted conflict with surrounding terrain.
Many of the technologies we use have been developed in-house by our engineers and controllers. I want to take this opportunity to commend them and all our people for their work in this area. Their efforts have allowed Nav Canada to keep pace with many developments under way in aviation, and indeed to establish a global leadership position in several key areas. We have been selling our ATM solutions internationally for over a decade. Our technologies can be found in the U.K., Denmark, Australia, the U.S., the Caribbean, Dubai, and Hong Kong. It's a reason Nav Canada is regarded as one of the most technologically advanced air navigation service providers in the world.
And because we have no shareholders, revenues from these international sales are invested in Canada and contribute to keeping our air navigation charges in Canada low. I am incredibly proud of our people and our record, but we can't rest on our laurels if we want to stay out front. We need to ensure that our regulations and programs support the development and deployment of promising technologies that can make our system safer, more efficient, and cost effective.
Transport Canada has applied a collaborative method of developing regulations that is valued by stakeholders such as Nav Canada. However, the overall rule-making process can be lengthy and inflexible at times. We support a move to a performance-based model of regulation by Transport Canada that is harmonized with global standards. Essentially, this means drafting regulations so the emphasis is on the performance that must be achieved rather than the method that must be followed to reach the performance goal.
A good example is multilateration and ADS-B. Because the regulations specifically stated “radar”, we could not initially use ADS-B and multilateration for surveillance. After going through a process to prove to Transport Canada that these technologies actually worked even better than radar, we eventually received an exemption stating that we could use them as equivalent to radar for separation of aircraft. We believe a performance-based model of regulation would be more sustainable, giving Transport Canada the ability to create regulation that focuses on safety performance, but does not need amendment to reflect each new emerging technology.
Finally, I would suggest that the standing committee consider carefully the approach used for infrastructure funding programs, and the important role these programs can have in the facilitation of cost-sharing for technology deployments in areas of the country where there may not otherwise be a business case.
A case in point would be the installation of AWOS, the automatic weather-reporting equipment in the north. This equipment would be invaluable for operators in challenging northern areas of the country where it would deliver safety and efficiency benefits for aviation, more reliable air service for northern communities, and improved climatic reporting in the north for all parties. It's expensive technology to install in the north due to construction costs. Consequently, it may not be feasible to deploy on a wide-scale basis without government assistance.
With respect to transportation technologies, the government's approach should focus on encouraging development, facilitating adoption, and supporting deployment in specific cases where the economics might otherwise not be there. In this country, with its vast distances, air transportation is an important and strategic capability that provides a critical link to communities and markets across the country and around the world. In other words, air transportation is essential for the quality of life of many Canadians, and it is imperative for the economic vigour and growth prospects of our country. I certainly credit the committee for examining what can be done in this area.
With that, Mr. Chairman, I would be happy to take questions.