NLETTER-1101 - Page: 11 of 13

Chilliwack, BC (YCW) 1.00
Grand Forks, BC (ZGF) 0.93
Kamloops, BC (YKA) 1.12 11/03
Oliver, BC (AU3) 1.059
Penticton, BC (YYF) 1.08 11/03
Trail, BC (AD$) 0.999
Vernon, BC (YVK)
(Sterling Pacific) 0.86 (Flight School) 0.93

Klamath Falls, OR 2.45 (110) 10/18
McMinnville, OR (MMV) 2.30
Middleton, WI (C29) 2.25
Salem, OR (SLE) (Chevron) 2.35
Spokane Felt's Field 2.35 10/18

Conversion: 1 USG = 3.785 L
Please take a few minutes, send FLYING BC the current AV fuel price at your airport, and help all pilots to keep their personal flying within their pocketbooks. Do your part, and together we can help make flying more affordable for us all. Drop us an e-mail once a month, and we’ll compile the current prices for publication in the next issue.

(Ottawa, October 3, 2001) - NAV CANADA today unveiled the key highlights of its action plan for dealing with a potential $145 million revenue shortfall during the current fiscal year, from September 1, 2001 to August 31, 2002. The goal of the plan is to maintain a safe and efficient air navigation service while making the adjustments required to manage through the current aviation industry downturn.
"Safety is our number one priority," said John Crichton, President and Chief Executive Officer. "We will continue to offer one of the safest air navigation systems in the world."
The NAV CANADA plan, approved this morning by the Board of Directors, offers a combination of measures to decrease costs and to increase both aviation and non-aviation revenue. This is intended to make up the potential revenue shortfall and enable the company to achieve its mandated objective of breaking even by year end. The shortfall is anticipated as a result of announced air carrier reductions in air traffic volumes since the terrorist attacks of September 11, 2001.
NAV CANADA is planning to reduce about $85 million in costs throughout the company’s extensive operations, while maintaining safety. The cost reductions are focused on five key areas: corporate overhead, operations, purchasing and contracting, major projects, and employee-related costs.
In corporate overhead, the company intends to place strong controls on expenses such as communications, systems maintenance, information technology, professional and consulting fees, advertising and promotion, and non-essential travel and relocation.
Operational cost reductions will be geared to the reduction in traffic volumes, with expected reductions in overtime as a result The company will also adjust the pace of its introductory training for new operational staff such as air traffic controllers and flight service specialists. "But we will maintain our drive to achieve full staffing," said Crichton, "as we continue to train and qualify the 450 students already in the system, and as we continue introductory training at these new levels".
NAV CANADA also intends to ask suppliers to identify opportunities to reduce costs during the next fiscal year. "We contract for a wide variety of services and information, from office supplies to large computer systems to aviation weather and charting services. We look forward to productive discussions, and decisions, with our suppliers."

The company has also decided to defer until the fall of 2002 the live implementation of its major systems project, the Canadian Automated Air Traffic System, or CAATS, thereby
realizing short-term savings.
The company has decided to take a cautious approach to the deferral of other needed operational and technology projects. There will be no planned delays to projects such as the planned Flight Information Centres, and the new version of the company’s radar display which features the new conflict alert capability. The company expects to invest over $100 million in new technology and systems, as
planned.

For further information please contact:
John Morris
Director, Communications
Manager,
(613) 563-7032