that founded Nav Canada. The four stakeholders elect 10 members as follows: These 10 directors then elect four independent directors, with no ties to the stakeholder groups. Those 14 directors then appoint the president and chief executive officer who becomes the 15th board member. This structure ensures that the interests of individual stakeholders do not predominate and no member group could exert undue influence over the remainder of the board. To further ensure that the interests of Nav Canada are served, these board members cannot be active employees or members of airlines, unions, or government. History The company began operations on November 1, 1996 when the government sold the country's air navigation services from Transport Canada to the new not-for-profit private entity for CAD$1.5 billion. The company was formed in response to a number of issues with Transport Canada's (TC) operation of air traffic control and air navigation facilities. While TC's safety record and operational staff were rated highly, its infrastructure was old and in need of serious updating at a time of government restraint. This resulted in system delays for airlines and costs that were exceeding the airline ticket tax, a directed tax that was supposed to fund the system. The climate of government wage freezes resulted in staff shortages of air traffic controllers that were hard to address within a government department. Having TC as the service provider, the regulator and inspector was a conflict of interest. Pressure from the airlines on the government mounted for a solution to the problem that was hurting the air industry's bottom line. A number of solutions were considered, including forming a crown corporation, but rejected in favour of outright privatization, the new company being formed as a non-share-capital not-for-profit, run by a board of directors who were initially appointed and now elected. The company's revenue is predominantly from service fees charged to aircraft operators which amount to about CAD$1.2B annually. Nav Canada also raises revenues from developing and selling technology and related services to other air navigation service providers around the world. It also has some smaller sources of income, such as conducting maintenance work for other ANS providers and rentals from the Nav Centre in Cornwall, Ontario. To address the old infrastructure it purchased from the Canadian government the company has carried out projects such as implementing a wide area multilateration (WAM) system, replacing 95 Instrument Landing System (ILS) installations