Regional carrier WestJet Airlines Ltd. said Tuesday that it was revamping the way it collects Nav Canada fees, switching from a flat-rate per-flight charge to one based on distance of trip.

The move will see it eliminate the $11 charge it currently levies for each flight, replaced instead with one of three mileage-related fees.

They include:

• $5 per-trip fee for distances under 300 miles

• $10 for distances between 301 miles and 1,000 miles

• $15 for flights over 1,000 miles.

The shift means that those travelling on flights with the airline of less than 1,000 miles will save up to $6 per trip while the longer flights will be charged an extra $4.

The change goes into effect for flights on or after Sept 1, the company said. "Over the past few months, we have been reviewing our model for the collection of Nav Canada fees, with the objective of finding a fairer method of cost recovery," WestJet's spokesman Bill Lamberton said in a statement.

Mr. Lamberton said that the move will hopefully "set an example" for the review of other fees — such as the Air Traveller's Security Charge and local airport improvement fees — and a shift toward a distance-flown formula.

WestJet and Air Canada's regional carrier Jazz have both complained that the surcharge is having a disproportionate impact on short-haul flights.

In April, WestJet announced it was cutting 13 flights per week on its Calgary-Edmonton route, saying the fee appeared to be a deterrent to customers.

As WestJet has been pushing for a pro-rated price, Air Canada has said it wants the fee to be excluded from aircraft with fewer than 60 seats, insulating most Jazz flights from the surcharge.

"We believe that this is a fairer means of collecting these fees from our guests and it is our hope that others in the industry will follow this example," said Clive Beddoe, WestJet's president and chief executive officer.

Mr. Beddoe has said that a $100 air ticket has an additional 84 per cent added for taxes and fees. In 1996, that amount was about 21 per cent.

Earlier this month, Canada's Department of Finance asked for proposals to study fare and passenger levels before and after the surcharge came into effect on April 1.

Finance Department spokesman Jean-Michel Catta said the study is part of the government's promise to review the level of the surcharge this fall.

Ottawa expects to raise between $2-billion and $3-billion over five years to pay for enhanced security needed after the Sept. 11 terrorist attacks.

WestJet — which serves 22 Canadian cities including Victoria, Hamilton and Moncton — is scheduled to report its second-quarter earnings Wednesday, with estimates calling for profit of $9.6-million or 13 cents a share. That compares with a profit of $8.2-million or 12 cents last year.

Air Canada, by far the nation's most-dominant carrier, is also expected to post a positive quarter, rebounding from six losing quarters.

Analysts expect Air Canada to post a profit of roughly $18-million (Canadian) or 15 cents a share for the three months ended June 30, according to a poll by Thomson Financial/First Call. That compares with a loss of $108-million or 90 cents last year.