Prime Minister Mark Carney announced plans on Tuesday for private investors to assume control of Canada’s main airports in Toronto, Montreal, Calgary, and Vancouver. The proposal, discussed at a government-led investment summit in Toronto, aims to retain federal government ownership of airport land and assets while reallocating funds from major airports to support smaller regional airports, potentially reducing costs for travelers at these locations.
Currently, private, not-for-profit airport authorities lease the airports from the federal government and manage all operations independently, including runway maintenance, baggage handling, and terminal upkeep. These airport authorities are financially self-sufficient and determine their own fees to cover operational expenses.
Under Carney’s proposed model, investors could operate the airports under set lease terms, with Transport Canada retaining regulatory oversight. Legal expert Karen Hennessey suggested that legislative adjustments may be necessary for this plan, emphasizing the need for a concession agreement outlining service standards, safety measures, cost controls, and staffing requirements.
While privately run airports are uncommon in North America, a study in the Journal of Air Traffic Management revealed that over half of the top 100 busiest airports in 2018 globally had private sector involvement, with Europe leading at 43%, followed by Asia and the Pacific at 26%.
Carney highlighted that Canadian pension funds are already invested in foreign airports and expressed a desire to attract such expertise domestically. He drew attention to the Australian experience, where privatization resulted in increased infrastructure investments leading to higher passenger costs but also improved service quality and satisfaction levels.
Various stakeholders have differing views on airport privatization. Airport authorities are cautiously open to investment discussions aligning with growth and affordability goals, while opposition parties like the NDP and Bloc Québécois are critical of the plan, fearing increased costs for travelers. Conservative Leader Pierre Poilievre urged a closer examination of the policy’s details to ensure fairness and transparency.
Previous privatization efforts under former Prime Minister Justin Trudeau’s administration, including a study proposing long-term leases for major airports, faced mixed reactions and were ultimately shelved in 2018 due to public feedback. The debate continues on the potential benefits and drawbacks of privatizing Canadian airports.