(Geneva) - "Where's the value for money?" asked Giovanni Bisignani, Director General and CEO of the International Air Transport Association responding to NAV Canada's proposed 7.9% rate hike.

This increase, to take effect on 1 August 2004, follows on a 6.9% increase in August 2003 and a 3% increase on 1 January 2003. "We have not seen any increase in the value of services provided," said Bisignani. "When the entire industry is struggling to reduce costs, this would move us in the completely wrong direction. Efficiency and cost reduction is the name of the game. Cost increases are simply not acceptable."

IATA will participate in the user consultation process that follows yesterday's announcement. "Commercial pressures forced cost reduction throughout the airline industry. Monopoly service providers need to keep pace with the changes in the industry to meet new realities," said Bisignani.